Tata Steel stock likely to close above Rs 100 today

Tata Steel stock likely to close above Rs 100 today

The shares of Tata Steel were among the top Sensex gainers on the day, as the market rebounded in line with positive global cues. The Tata Steel stock broke the 100 mark in opening deals and looked poised to close above the three figure mark amid a strong domestic market rally. Sensex increased by 1,067 points to 57,856 and Nifty increased by 312 points to 17,200 in early trade today.

The Tata Steel stock is expected to close above Rs 100 today, after a period of six trading sessions. The stock ended up at Rs 104.25 on September 23 of this year. It closed below the 100 mark at Rs 99.85 in the next session, due to highly volatile global markets.

Sentiments around the stock were supported by reports that Odisha-based Neelachal Ispat Nigam had resumed operations nearly 90 days after it was bought by a Tata Steel subsidiary for Rs 12,000 crore in a bidding process. The plant with a 1.1 million tonne steel-making capacity was closed for almost two years because of various reasons.

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Tata Steel Long Products TSLP, an arm of Tata Steel, said it had achieved a milestone with the restarting of the blast furnace at its subsidiary NINL, just 90 days after the completion of its acquisition on July 4, 2022.

In early trade, the stock was up to 3.26 per cent to Rs 101.50, compared to the previous close of Rs 98.30 on the BSE. Tata Steel's shares are higher than the 5 day moving averages but are lower than 20 day, 50 day, 100 day and 200 day moving averages.

The large cap stock has lost 24 per cent in a year, and fell 9.54 per cent in 2022. The share price of Tata Steel has declined 29.70 per cent from its 52 week high of Rs 142.62 hit on October 19, 2021.

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The Tata Group firm saw a 21 per cent decline in its net profit in the first quarter of the current financial year. The steel major logged a net profit of 7,714 crore for the quarter ended June 30, 2022 against Rs 9,768 crore in the corresponding quarter of FY 22.

Here is a look at what analysts said about Tata Steel's outlook after six sessions, after the stock breached the Rs 100 mark.

Abhijeet from Tips 2 trade said that a global meltdown in the US and Europe has caused a panic sell off of global indices with metal stocks including Tata Steel bearing the brunt. There will be a strong support at Rs 90.5, with immediate support at Rs 94. If Tata Steel doesn't close above Rs 101 on daily charts, investors should avoid buying. Tirthankar Das, Technical Derivative Analyst, Retail, Ashika Stock Broking said that the volume trend has shown an accumulation in Tata Steel for the past few months, indicating an increased enthusiasm to push prices higher while the latter lacks volume participation. It can be expected that Tata Steel will see a rise and head towards Rs 140 -- 150 in medium to long-term perspective, measuring the implication of the bullish downward sloping channel Ravi Singh, vice president and head of research, Share India said, The weakness in international prices and subdued demand has driven down domestic steel prices. Tata Steel is in expansion mode and requires large capital. The rising interest rate may adversely affect the cost of financing. The current fluctuation in rupee is also working against the import dependence and offshore business of the company. On the back of robust operating performance, Tata Steel's strong cash flow has confidence in its future perspective. The stock may see lower levels buying for the target of Rs 100 in the short term and Rs 107 levels for the long term.