Technical Analysis of Tata Steel Ltd (1H Chart on NSE)
1. Support & Resistance Levels:
Resistance Levels (Upside Targets):
154.12 (Close to the 0.382 Fibonacci retracement level, indicating resistance)
145.50 (0.5 Fibonacci retracement, another strong level)
Support Levels (Downside Protection):
142.50 (Potential support level)
134.76 & 130.38 (Stronger support zones, previous consolidation area)
122.90 (0.786 Fibonacci retracement, a deep correction level)
2. Target & Stop Loss Considerations:
Target: If the stock rebounds, the immediate target would be 154.12 and higher levels.
Stop Loss: If the price falls below key support 145.50, traders might place a stop loss near 142.50 or 136.27 (0.618 Fib level).
3. Indicators Analysis:
Fibonacci Retracement Levels:
Price is currently consolidating around the 0.5 Fibonacci level (145.50), which is an important decision zone. A bounce from here could indicate further upside.
If the stock breaks below 145.50, the next target on the downside would be 136.27 (0.618 Fib).
Stochastic RSI:
The Stochastic RSI is oversold (41.97), indicating a potential reversal if buyers step in.
However, if it remains below 50, it could signal further downside.
Volume Analysis:
There is a 2.73M volume spike, which suggests strong selling pressure at this level.
Conclusion:
If Tata Steel holds above 145.50, a rebound toward 154.12 is likely.
If price drops below 145.50, expect further downside toward 142.50 and 136.27.
The Stochastic RSI suggests a possible reversal, but confirmation from price action is needed.
Trend & Market View for Tata Steel (NSE) Across Timeframes
1. Short-Term View (Next Few Days to Weeks)
📉 Trend: Bearish to Neutral
Price is testing support at 145.50 (0.5 Fibonacci retracement).
Stochastic RSI is oversold, indicating a possible short-term bounce.
If price breaks below 145.50, expect a decline toward 142.50 or 136.27 (0.618 Fibonacci level).
Resistance: 154.12 (0.382 Fibonacci). A breakout above this level can turn the trend bullish.
🔹 Short-Term Strategy:
If price holds above 145.50, a buy-on-dip approach with a target of 154.12 could work.
If it falls below 145.50, expect a further drop to 142.50 or 136.27.
2. Medium-Term View (Next Few Weeks to Months)
📈 Trend: Bullish (with Consolidation)
The stock is in an uptrend but facing resistance near 154.12.
If it breaks above 154.12, the next target is around 160-165.
However, if weakness persists, it could retrace toward 136-130 levels before resuming an uptrend.
🔹 Medium-Term Strategy:
As long as the price stays above 136.27, the overall trend remains bullish.
Any dip towards 136-130 can be a buying opportunity for long-term investors.
3. Long-Term View (Months to Years)
📈 Trend: Strong Bullish
The overall long-term trend remains positive with higher highs and higher lows.
130-122 is a strong long-term support zone; dips toward these levels can be buying opportunities.
If Tata Steel crosses 160-165, the long-term rally could continue towards 180-200 levels.
🔹 Long-Term Strategy:
Long-term investors can accumulate near strong support levels (130-122).
A breakout above 160 can lead to significant upside momentum.
Final Outlook:
✔ Short Term: Cautious, watch 145.50 support.
✔ Medium Term: Bullish but needs to hold 136+ levels.
✔ Long Term: Strong bullish; dips to 130-122 are good for investment.
NEWS :-
Metal shares surge to extend gains for a fifth session on Jefferies' bullish call
2 min read
TATASTEEL −1.80%
JSWSTEEL −2.06%
Shares on the Nifty Metal index were sharply higher, taking the index up by a percent to near 9,000 level - extending gains for a fifth session in a row – after international brokerage Jefferies’ issued a positive note highlighting top picks within the sector.
Jefferies in its latest note said that the metal stocks have outperformed benchmark index Nifty 50 by up to 15-20 percent in the year-to-date. Hopes of an economic recovery in China and expectations of anti-dumping duty to safeguard the domestic steel makers are acting as a positive trigger for the shares, the international brokerage said.
The steel stocks are relatively expensive, but the valuations may sustain in the future, Jefferies said.
Tata Steel Shares of Tata Steel were up nearly a percent after Jefferies maintained 'Buy' call and raised target price to Rs 180 per share from earlier Rs 165 per share. The latest target price implies an upside potential of nearly 18 percent from the last closing price.
Hindalco Jefferies also maintained its 'Buy' rating on Hindalco with a target price of Rs 800 apiece, sending the shares higher by 2 percent on March 10. The brokerage’s target price implies an upside potential of nearly 13 percent from the last closing price.
JSW Steel For the shares of JSW Steel, Jefferies maintained its 'Hold' rating, it however increased the target for the stock to Rs 920 per share from the earlier Rs 850 per share. JSW Steel shares were trading nearly 2 percent higher. The target price set by the brokerage implies a downside potential of around 11 percent from the last closing price.
The other metal stocks which recorded strong gains on March 10 included Jindal Steel, Adani Enterprises, Welspun Corp, NMDC and more.
Investors are expecting more stimulus measures by China to boost consumption and cushion the economic impact of an escalating trade war with the United States, even as both countries have selectively imposed tariffs on each other.
Steel stocks have been on the rise since past week after China announced it would restructure its steel industry to cut the total output. The latest move by China is expected to reduce the dumping of cheap steel into the Indian market, seen as a major positive for the domestic steel manufacturers.
The metals index has surged 8.6 percent last week, its best in nearly four years.
(With inputs from CNBC-TV18)Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions
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