TATASTEEL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.2

Technical Analysis Report for Tata Steel Ltd (TATASTEEL)

• Trend Status: Trending upward with strong momentum
• Moving Averages: Price above both 50 DMA (₹171) and 200 DMA (₹159) — bullish alignment
• RSI: 66.8 — bullish zone, nearing overbought territory
• MACD: Positive at 3.53 — bullish crossover, confirms upward momentum
• Bollinger Bands: Price near upper band — breakout continuation possible
• Volume: Below weekly average — momentum slowing, needs confirmation

Entry & Exit Zones

• Support Levels: ₹171 (DMA 50), ₹165 (trendline), ₹159 (DMA 200)
• Resistance Levels: ₹187 (52-week high), ₹192 (gap zone)
• Optimal Entry: ₹172–₹178 (on pullback or consolidation)
• Optimal Exit: ₹185–₹192 (if momentum sustains)

Positive

• MACD and RSI confirm bullish momentum
• Price above key moving averages — trend strength intact
• EPS of ₹11.3 — solid earnings base
• DII holding increased by 0.85%, FII by 0.07% — institutional confidence

Limitation

• Volume below average — weak participation
• RSI nearing overbought — potential short-term pullback
• PEG ratio of -0.64 — negative growth-adjusted valuation

Company Negative News

• Debt-to-equity ratio of 0.50 — moderately leveraged

Company Positive News

• PAT improved from ₹3,554 Cr. to ₹3,693 Cr. — sequential growth
• Quarterly profit variation of 5.28% — steady YoY growth

Industry

• Steel and metals — cyclical sector with demand tied to infrastructure and manufacturing
• Industry P/E of 22.4 — TATASTEEL trades at a discount (P/E of 15.4)

Conclusion

Tata Steel Ltd is currently trending upward with bullish technical indicators and solid earnings. While volume is slightly weak and RSI is nearing overbought territory, MACD and price action above key moving averages support further upside. Traders may consider entries near ₹172 with exits around ₹192, monitoring RSI and volume for sustained momentum.