Tata Steel Share Price Climbs 2.16% to Rs. 175.65: Will Momentum Continue?

Overview

• Tata Steel share price surged 2.16% to Rs. 175.65, trading near its 52-week high of Rs. 177.82.

• Tata Steel stock had a trading volume of 4.88 crore shares with the majority of analysts giving it a ‘Buy’ rating.

• Technical support and resistance levels suggest short-term bullish momentum, with long-term stability.

Tata Steel share price surged 2.16% to Rs. 175.65 on the NSE, as investment demand in metal stocks boosted market mood. The stock opened at Rs. 172.79 above its last close of Rs. 171.94. Its intraday high is Rs. 177.82 while the low is Rs. 172.78. The day's high was at its 52-week high, showing growing investor optimism about the metal sector. Let’s explore Tata Steel share price analysis in detail based on Moneycontrol data. 

Current Market Performance

Tata Steel shares’ market capitalization is Rs. 2,19,273 crores. Its book value per equity share is Rs. 72.21 with a price-to-book (P/B) of 2.44, which is at par with its industry average P/B.

Tata Steel share price chart on TradingView shows gains of 2.24% as of 2.13 PM:

The stock’s trading volume is 4.88 crore worth Rs. 85,752.71 lakh. The 20-day average volume of the stock was at 2.09 crore shares, which means today's turnover more than doubled its recent average, indicating growing investor participation. Volume Weighted Average Price (VWAP) was at Rs. 176.40.

Also Read: Stock Market Today: Sensex at 82,112, Nifty Hits 25,169; Tata Steel, Dr Reddy’s Lead Gains

Key Financial Metrics

The company's twelve-month (TTM) earnings per share (EPS) is Rs. 3.64, a 210.43% year-over-year increase, higher than the industry PE of 25.48. This premium valuation reflects the stock’s future growth prospects as well as higher profitability.

Tata Steel stock has a dividend yield of 2.05%, making it appealing to income seekers. Historically, the shares had an all-time high of Rs. 184.60 and an all-time low of Rs. 3.71, which indicates its phenomenal long-run growth path.

Analyst Sentiment Leans Bullish

Out of 30 analysts' ratings on Moneycontrol, 50% recommended a 'Buy' rating, followed by 13% who suggested 'Outperform'. On the other hand, 23% like to 'Hold' and only 13% gave the stock an  'Underperform' or 'Sell' rating. This means that market experts expect the stock to generate steady returns in the near term. It is backed by growing global steel demand and cost-cutting initiatives by the company.

Price Levels to Watch

According to Moneycontrol data, Tata Steel immediate resistance level is Rs. 173.69 (R1) while the support level is Rs. 170.12. Since Tata Steel share price was trading above the key resistance level, it could see bullish momentum continue if overall market sentiment continues to be favorable.

Also Read: Tesla Stock Falls 4% After Introducing Lower-Priced Model 3, Model Y

Investor Outlook

Since the metal index is gaining and Tata Steel share price is nearing its 52-week high level, the stock seems to be in a short-term upswing. Increasing steel rates, healthy institutional buying, and good demand from construction and manufacturing sectors may make Tata Steel shares stay buoyant. Investors should keep an eye on global commodity price levels and input cost directions, which are likely to affect future profitability.

FAQs

1. Why did Tata Steel share price rise today?

Tata Steel share price gained following good buying interest in the metal segment and upbeat market mood. Steady trading volume of 4.88 crore shares reflected active investor involvement, propelling the stock to Rs. 175.65.

2. What are the key price levels to look out for Tata Steel stock?

According to Moneycontrol data, the pivot point of the stock is Rs. 171.88, while resistance levels are at Rs. 173.69, Rs. 175.45, and Rs. 177.26. Support levels are at Rs. 170.12, Rs. 168.31, and Rs. 166.55. Closing above resistance areas indicates bullish momentum.

3. What are Tata Steel's fundamentals like?

Tata Steel is a Rs. 2,19,273 crore market-cap company with a book value per share of Rs. 72.21 and TTM EPS of Rs. 3.64 (+210% YoY). It has a P/B of 2.44 and TTM PE of 48.26, which reflects high growth potential.

4. How is the analyst sentiment towards Tata Steel shares?

Of 30 analysts, 50% say 'Buy', 13% say 'Outperform', 23% say 'Hold', and merely 13% say 'Underperform' or 'Sell'. The majority of the experts anticipate steady returns and notice favorable momentum because of steel demand worldwide and efficiency in operations.

5. Should investors be looking forward to Tata Steel stock hitting its all-time high?

Tata Steel's all-time high is Rs. 184.60. With good volume, bullish technical indications, and strong market participation, it can test that level. Investors must keep an eye on steel prices and global economic conditions for cues.