Tata Steel shares in focus today; here’s why

Tata Steel shares are likely to be in focus on Wednesday after the Competition Commission of India (CCI) has officially greenlit its proposal to take full control of Tata BlueScope Steel Private Ltd. 

In a release dated December 23, the fair trade regulator approved the acquisition, paving the way for the steel major to consolidate its footprint in the coated steel segment.

The deal structure involves Tata Steel acquiring the remaining 50 per cent equity shareholding currently held by BlueScope Steel Asia Holdings Pty Ltd, the release said.

Prior to this transaction, the target company operated as a 50:50 joint venture between BlueScope Steel and Tata Steel, facilitated through their respective subsidiaries.

BlueScope Steel operates primarily in the coated steel segment, offering surface coated steel products (SCPs) and associated solutions, it said. Its product basket is robust, featuring metallic coated or galvanised steel products (GPs), pre-painted and colour-coated steel products (CCPs) utilised in applications like roofing, walling, and cladding.

On Tuesday, shares of Tata Steel closed 1.03 per cent higher at Rs 170.90 on the BSE, moving up from a previous close of Rs 169.15. The counter has been a performer over the year, having gained nearly 25 per cent year-to-date.

According to data from Trendlyne, the RSI stands at 52.9, indicating that the RSI is currently in the mid-range. Similarly, the MFI is at 62.3, also hovering in the mid-range.

The current price is trading below the 50-day simple moving average (SMA), suggesting some short-term resistance. However, it remains well above the long-term support, trading higher than the 200-day SMA.