Tata Steel Shares Approach Record Highs: Analysts Predict Further Growth

Tata Steel shares are edging closer to their all-time high of Rs 147.35, recorded on February 7, 2024, as the metal giant closed marginally lower at Rs 145.50 on Friday's trading session.

Despite delivering single-digit returns in 2024, Tata Steel Ltd has outperformed the broader market, with a surge of 4% compared to the BSE metal index's 1.42% increase this year.

Opening higher at Rs 146.90 on the Bombay Stock Exchange (BSE), Tata Steel saw an intraday high of Rs 147.10, maintaining a market capitalization of Rs 1.81 lakh crore, with a total turnover of Rs 28.44 crore and 19.46 lakh shares changing hands.

Over the past three and five years, Tata Steel shares have exhibited remarkable growth, rallying by 99% and 190%, respectively. Analysts are optimistic about its future trajectory, with projections of a potential 30% surge within the next year.

With a one-year beta of 0.5, indicating lower volatility, Tata Steel remains a favorable option for investors seeking stability. Technical indicators such as the Relative Strength Index (RSI) at 64.5 suggest a balanced trading zone.

Axis Securities has set a price target of Rs 150 for Tata Steel, citing positive prospects in the Netherlands and anticipated cost reductions in the UK operations.

According to Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox, Tata Steel's bullish momentum is supported by the defense of the 50-day Simple Moving Average (SMA) at Rs 135, with a breakout above Rs 147.40 potentially leading to levels of Rs 175-185.

Riyank Arora, Technical Analyst at Mehta Equities, emphasizes the stock's positive trend, suggesting major support at Rs 134 and resistance at Rs 147.50. Further upside beyond Rs 147 could drive Tata Steel towards targets of Rs 153 and Rs 160, with a long-term outlook aiming at Rs 200-225.

Abhijeet from Tips2Trades warns of a sideways to bearish trend on the daily charts, indicating strong resistance at Rs 148. A breach below support levels of Rs 141 may lead to a near-term target of Rs 128, while surpassing Rs 148 could set the stage for further gains towards Rs 155.

Disclaimer: Investors are reminded that stock market analysis provided here is for informational purposes only and should not be considered as investment advice. It is recommended to consult with a qualified financial advisor before making any investment decisions.