Tata Steel shares rose 14% in 2023; here are the price targets for next year

Tata Steel shares have gained 14% in 2023, leaving short-term investors guessing about the outlook of the stock. On the other hand, the Tata Group stock rose 22.49% in a year indicating that investors earned moderate returns during the period. Tata Steel stock opened higher at Rs 136.15 on Wednesday. During the session, the stock hit an intraday high of Rs 136.35. Market cap of the firm rose to Rs 1.67 lakh crore. Total 4.32 lakh shares changed hands amounting to a turnover of Rs 5.93 crore on BSE.  

Tata Steel stock ended 1.27% higher at Rs 135.20 on Tuesday.

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Tata Steel stock has a one-year beta of 0.2, signaling low volatility during the period. In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 63.8, signaling it's trading in the neither in the overbought nor in the oversold zone. Tata Steel shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Tata Steel shares have rallied 118.79% in three years and risen 168.12% in five years.  

Aditya Gaggar, Director of Progressive Shares said, "With a higher top higher bottom formation, the stock is in the primary uptrend and recently, it has given a breakout from a V-shaped pattern which was confirmed with a positive crossover in MACD. A reading of 29 in ADX is also indicating the presence of a strong underlying trend. As per the pattern breakout, the target arrives at Rs 155."

Abhijeet from Tips2trades said, "Tata Steel is bullish but also overbought on the Daily charts with next resistance at 152. Investors should book profits at current levels as a daily close below the support of Rs 133 could lead to a target of Rs 118 in the near term."

Tata Steel logged a loss of Rs 6,511 crore in the September 2023 quarter against a net profit of Rs 1,297 crore a year ago. The steelmaker's total revenue from operations came at Rs 55,681 crore against Rs 59,877 crore reported in the year-ago period.

Domestic brokerage firm YES Securities is bullish on Tata Steel. While the company's Europe business is undergoing transitions, its India business is gaining strengths, it said.  

The brokerage said that Tata Steel was rightly positioned in the Indian steel space and growing strongly with upcoming capacities. It has initiated ADD rating on Tata Steel shares for a target of Rs 153.

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