Tata Steel shares gain for 5th straight session. What should investors do?

Tata Steel shares continued their upward momentum for the fifth consecutive session, climbing 2.29% to reach Rs 165.30 in Thursday’s trading, as the broader market rallied. The company’s market capitalisation now stands at Rs 2.06 lakh crore.
Tata Steel’s one-year beta signals significant volatility in its stock price, while in terms of technical indicators, its relative strength index (RSI) places it in a neutral zone, neither overbought nor oversold.
The stock is trading well above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, showing a strong bullish trend.
In the past year, Tata Steel has rallied 28%, with an 18% gain so far in 2024.
Analysts are divided in their outlook. Vishnu Kant Upadhyay, AVP of Research and Advisory at Master Capital Services, told Business Today that he remains bullish on Tata Steel with a target price of Rs 176 and recommends a stop loss at Rs 150.
Upadhyay noted that the stock has broken out of a consolidation phase with increased trading volumes, signalling the potential for further gains. According to Upadhyay, the stock’s strength is reinforced by its position above the 21-day EMA, and momentum indicators like the MACD are supporting a bullish trend.
In contrast, Kushal Gandhi, a Technical Analyst at StoxBox, advises caution. He told Business Today that Tata Steel has retraced 22% from its all-time highs, and while selling pressure appears to have eased, there are no strong signals for a reversal. Gandhi recommends holding off on buying at current levels.
Meanwhile, Jigar S Patel, Senior Manager of Technical Research at Anand Rathi Shares and Stock Brokers, offers a more optimistic view. He highlighted that the stock recently broke a key bearish trendline on the daily chart, suggesting a reversal from its previous downtrend. Patel also observed bullish divergence in the RSI, which indicates weakening selling pressure.
Based on these signals, he recommends entering long positions in the Rs 152-155 range, with a target of Rs 165 and a stop loss at Rs 147.5.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)