Tata Steel shares rise for sixth session, overbought on charts; here's what analysts say

Tata Steel share price today: Shares of Tata Steel rose for the sixth straight session today amid a rally in the broader market. The metal stock climbed to Rs 168.40, up 1.69% on BSE in Friday's trading session. Market cap of the firm rose to Rs 2.08 lakh crore. Total 4.30 lakh shares changed hands amounting to a turnover of Rs 7.20 crore on BSE.

Tata Steel stock has a one-year beta of 1.5, signaling high volatility during the period. In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 70.3, signaling it's trading in the overbought zone.

The Tata Group stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages indicating that the stock is in bullish zone.

Tata Steel shares rose to a record high of Rs 184.60 on June 18, 2024 and fell to a 52 week low of Rs 114.25 on November 2, 2023.

Tata Steel shares have rallied 30.67% in a year and risen 20% in 2024.

Vishnu Kant Upadhyay, AVP - Research and Advisory at Master Capital Services is bullish on the stock with a target price of Rs 176. Stop loss can be fixed at Rs 150.

"Tata Steel has given a consolidation breakout, accompanied by a spike in volumes, which strengthens the case for initiation of fresh bullish rally in stock. The stock now appears favourable for bulls, presenting a strong opportunity. Stock is currently trading above the 21-day EMA, it signals strength, while the MACD suggests that positive momentum is likely to continue, further supporting a bullish outlook," said Upadhyay.

Kushal Gandhi, Technical Analyst at StoxBox said, "The share price of Tata Steel has experienced a 22 per cent retracement to its key support level, indicating profit booking from its all-time high levels. However, there is evidence of the stock fluctuating around this support level, suggesting a decrease in selling pressure. Despite this, there are no clear signs of the stock reaching a bottom and preparing for a reversal. Consequently, we advise refraining from purchasing the stock at its current market price."

Jigar S Patel, Senior Manager - Technical Research Analyst, at Anand Rathi Shares and Stock Brokers  said, "Tata Steel experienced a violation of a key bearish trendline on the daily chart, indicating a potential reversal in momentum from its previous downtrend. Before this violation occurred, it had found solid support along the high-low band of the 200-DEMA, a crucial indicator of strong support levels. Additionally, on the daily chart, a bullish divergence was observed in the RSI, where it trended higher even as the stock price remained low, signaling a weakening of selling pressure and the possibility of an upward price movement. This bullish divergence materialized near a critical demand zone and a previous breakout range, boosting the positive sentiment around the stock. These technical factors collectively suggest that Tata Steel is poised for a potential strong rally. Given these signals, a long position is recommended in the price range of Rs 152-155, with an upside target of Rs 165. To manage risk, it is advisable to set a stop-loss at Rs 147.5."