Shares of Tata Steel and Jindal Stainless are among the key picks in the metal sector, with the former attracting investor attention due to Tata Group and the latter delivering multibagger returns during the last six months. While shares of Tata Steel have been consolidating for over a year now, the stock of stainless steel producer Jindal Stainless has zoomed 124% or Rs 152 since August 22, 2022. On the other hand, shares of Tata Steel have risen 7.95% or Rs 113.40 in the last six months.
In today’s trade, Tata Steel shares rose for the sixth straight session and gained 4% during the period. Shares of Tata Steel opened marginally higher at 112.70 against the previous close of Rs 112.35 on BSE today. The stock has lost 4% in a year and risen 0.67% this year. Tata Steel shares closed 0.93% higher at Rs113.40. Total 15.31 lakh shares of Tata Steel changed hands amounting to a turnover of Rs 18.03 crore on BSE. Market cap of Tata Steel rose to Rs 1.38 lakh crore. The stock hit a 52-week high of Rs 138.63 on April 6, 2022 and a 52-week low of Rs 82.71 on June 23, 2022.
In terms of technicals, the relative strength index (RSI) of Tata Steel stands at 43.8, signaling it's neither oversold nor overbought. Tata Steel stock has a one-year beta of 1.2, indicating high volatility during the period. Tata Steel shares are trading higher than the 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages.
On the other hand, shares of Jindal Stainless hit an all-time high of Rs 274, rising 2.3% intraday on BSE today. Jindal Stainless stock has gained 7.17% in the last 4 days. The stock has gained 44.14% in a year and risen 14.15% in 2023. Jindal Stainless shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Total 1.49 lakh shares of the firm changed hands amounting to a turnover of Rs 4.01 crore on BSE. Market cap of Jindal Stainless rose to Rs 14,343 crore. It closed 1.90% or Rs 5.10 higher at Rs 272.95 on BSE.
In terms of technicals, the relative strength index (RSI) of Jindal Stainless stands at 68.3, signaling it's neither oversold nor overbought. Jindal Stainless stock has a one-year beta of 1.2, indicating high volatility during the period. Jindal Stainless shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Here’s a look at the outlook of Tata Steel and Jindal Stainless shares in the long term.
Tata Steel
Anand Rathi has maintained its buy rating on Tata Steel with a target price of Rs 133.
“The company is among the most geographically diversified steel producers in the world and is one of the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum and has operations and commercial presence across the world. During the quarter, the company witnessed the full impact of correction in steel prices after the imposition of export duty in India. Tata Steel's overall consolidated sales volumes are expected to 0.5 MT, higher compared to Q3FY23. We remain positive on Tata Steel and maintain our BUY rating with revised target price of Rs 133,” the brokerage said.
Abhijeet from Tips2trade said , "Tata Steel has a strong resistance at Rs 113 on the Daily charts. A close above this level could be bullish and lead to targets of Rs 122-128 in the near term. Support will be at Rs 107.5."
However, Ravi Singhal, CEO of GCL is bearish on the stock.
“Tata Steel stock looks weak for a target of Rs 95 with a stop loss of Rs 121. The stock has been making lower lows and lower highs on the charts. The Q3 earnings results also come negative,” said Singhal.
Mileen Vasudeo, Senior Technical Analyst, Arihant Capital Markets said, "The stock trend remains down. The scrip has taken support at 150-day SMA (Rs 107) and is seeing a pullback rally. Hence, one can hold short position with a stop loss placed at Rs 121 for a target between Rs 104 and Rs 96 levels in the next couple of weeks."
Jindal Stainless
Abhijeet from Tips2trade said, "Jindal Stainless has a strong resistance at Rs 269 on the Daily charts. Investors should book profits at current levels and wait for lower support levels of Rs 218- Rs 230 to initiate fresh buy positions."
Sumeet Bagadia, Executive Director, Choice Broking said, "From July 2022, the stock has been creating higher highs and higher lows constantly on the monthly charts. JSL has a good base between Rs 250-255 levels. The stock has been trading above the 20, 50, and 200 Day EMA levels consistently, demonstrating the stock's strength. We can see strength on the weekly charts as well, and the stock was able to close above the key support level of Rs 255, which is also a 20 Day EMA. The stock can continue to rise towards levels of Rs 290-300 once it has crossed the minor resistance of Rs 272 levels. On Daily charts, the stock has been into a smaller range and hence we can witness a squeeze of a Bollinger band with price trading above middle band of the Bollinger band indicating that the expansion of Bollinger band would help stock to move on the higher side. Based on the above analysis, we recommend buying Jindal Stainless at current of Rs 264 and can be accumulated up to Rs 258 levels for the target of Rs 290. If the price closes below Rs 250, our analysis will be regarded as being invalid."
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