RSI has bounced from the oversold zone and is positively placed which could fuel the up move. However, in the past few months, corrective phase hauled weekly stochastic oscillator in extreme oversold territory (currently placed at 16), indicating impending pullback. "Downtrend remains unabated and is presently trading marginally below the 50% retracement (High: 1535 Low: 250) of the entire rally since Apr'20 at Rs 890. Tirthankar Das, Head of Technical Research, Ashika Group Investors can start buying only if daily close is above Rs 905 for targets of Rs 990 in the coming weeks." "Weaker global markets due to high inflation have led to a capitulation in metal stocks including Tata Steel. Tata Steel stock may remain weak for some more days and value buying will trigger around Rs 950 levels."ĪR Ramachandran, Co-founder & Trainer, Tips2Trade These set of rules resulted in significant cool of in the metal prices. Also, to limit the volatility in steel prices, China reintroduced several rules to control the trading. Get the latest Tata Steel Ltd (TATASTEEL) real-time quote, historical performance, charts, and other financial information to help you make more informed trading and investment decisions. Unless the Chinese government announces a massive stimulus to revive the economy, there will be a possibility of curbing economic activity. "Steel prices are not getting support due to slowdown in China. Hence, the cost structure will only benefit from the reduction in coking coal prices that too for 70-75 per cent of requirement as India operations are captive on coking coal for the balance," Motilal Oswal said. India operations will not benefit from lower iron ore costs or discounted Russian coal. "We believe Tata Steel standalone's 1HFY23 EBITDA is likely to contract by 66 per cent over 1HFY22 driven by lower ASP, lower demand and peak coking coal costs and high base effect. It has revised target price to Rs 965 against Rs 1,410 earlier. We reckon stock may not hit 2020 trough of 0.5x given expectations of a China stimulus and a significantly strong balance sheet (perhaps strongest in last 15 years)," the brokerage added.įinancial services firm Motilal Oswal has assigned a neutral rating to Tata Steel stock. "Tata Steel's price to book value at 0.8 times isn't too far from 1 standard deviation below mean (0.7x). However, think now maybe time to bottom fish." The global brokerage said, "Take a relook at earnings estimates and cut EBITDA by 32 per cent /34 per cent on lower realisations following weakness in China export prices. However, it has maintained buy stance on the stock. Share Market Live: Sensex rises 700 pts, Nifty above 15,550 Dr Reddy's, Titan top gainersĬITI has reduced its target price to Rs 1,085 against the earlier Rs 1,800.
Brokerages and analysts are not very optimistic about the outlook for the stock.
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