Tata Steel shares in breakout rally, can they log record high after a year?

Tata Steel share price today: Shares of Tata Steel have given a breakout from the consolidation range in which they traded for nearly a year. The recent rally in the stock price has pushed the metal stock near its record high. Tata Steel stock is up 8.6% in a week, bringing it near the record high of Rs 170.20 reached on September 30, 2024. 
In the current session, the stock rose to a high of Rs 169.20. Market cap of the firm stood at Rs 2.08 lakh crore. 

In a decent rally, the stock has gained 22% this year.  

The relative strength index (RSI) of Tata Steel stood at 64, signaling it's trading neither in the overbought nor in the oversold zone.  

The Tata Group stock has a one-year beta of 1.3, signaling high volatility during the period. 

The Tata Group stock trades 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 a bullish zone.

Shitij Gandhi, Sr. Research Analyst(Technicals), SMC Global Securities said, "The stock is currently trading near a crucial resistance zone of Rs 169– Rs 170, a level that has repeatedly capped the upside since June. After a strong rally in recent sessions, the broader setup suggests that momentum is likey to continue towards higher levels.

The immediate support at is seen Rs 160– Rs 162, with stronger demand likely near Rs 155, which has served as a reliable base in recent months. A sustained breakout above Rs 170 with strong volumes could open the door for an upside move towards Rs 181–185. Failure to cross this level may keep the stock range-bound in the Rs 150– Rs 170 corridor in the short term."

Mandar Bhojane, Senior Technical & Derivate Analyst, Choice Broking said, On the weekly chart, Tata Steel has formed an inverted head and shoulders pattern with strong volumes and is on the verge of a breakout, indicating bullish momentum. The price is consolidating near the breakout zone, which shows strength and accumulation. If the stock manages to sustain and close above the Rs 170 level, it has the potential to move towards Rs 185 and Rs 195 in the short to mid-term. The MACD has also given a positive crossover above the zero line, further confirming bullish undertones. These technical signals support the probability of continued upside.

On the downside, immediate support is placed near Rs 163, making the stock attractive for buy-on-dips opportunities. For prudent risk management, traders should maintain a stop-loss at Rs 158 while targeting higher levels."