Friday, February 7, 2025

TATASTEEL BUY POSITION CALL

 

Based on the provided chart of Tata Steel Ltd (NSE) - 2h timeframe, let's analyze the stock from both a technical and fundamental perspective.


Technical Analysis:

Support & Resistance Levels:


Support Levels: ₹132.50, ₹128.90

Resistance Levels: ₹139.50, ₹152.10

Fibonacci Retracement Levels:


The 0.5 level (~₹139.50) is acting as resistance.

The 0.618 level (~₹146.00) is another key resistance.

The 0.786 level (~₹152.10) is the major long-term resistance.

RSI Indicator:


The RSI is around 61.63, indicating moderate bullish momentum.

If RSI crosses 70, it would suggest overbought conditions.

Volume Analysis:


Volume is moderate, indicating stable buying interest.

A breakout above ₹139.50 with high volume can confirm further upside.

Short-Term & Long-Term Targets:

Timeframe Target 1 Target 2 Stop Loss

Short Term (1-2 weeks) ₹139.50 ₹146.00 ₹132.50

Long Term (1-3 months) ₹146.00 ₹152.10 ₹128.90

Fundamental Analysis:

Sector & Market Trend:


Tata Steel is a part of the cyclical metal sector, which is currently influenced by global commodity prices.

Recent steel price hikes and demand recovery can support price movement.

Company Performance:


Strong domestic steel demand in India.

Global steel prices remain volatile, impacting export margins.

Debt reduction and operational efficiencies have improved the outlook.

Risk Factors:


Global recession fears could impact demand.

Regulatory changes or commodity price fluctuations could cause volatility.

Conclusion:

Short-Term: If Tata Steel breaks ₹139.50, we could see a move towards ₹146.00.

Long-Term: If it sustains above ₹146.00, the next target is ₹152.10.

Stop-Loss: ₹132.50 for short-term and ₹128.90 for long-term to limit downside risk.

Would you like more details on specific indicators or a different timeframe analysis?

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