Tata Steel Limited Stock Forecast
Green day on Friday for Tata Steel Limited stock after gaining 0.87%
(Updated on May 17, 2024)
The Tata Steel Limited stock price gained 0.87% on the last trading day (Friday, 17th May 2024), rising from ₹165.90 to ₹167.35. It has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the stock fluctuated 1.81% from a day low at ₹165.45 to a day high of ₹168.45. The price has risen in 8 of the last 10 days and is up by 0.51% over the past 2 weeks. Volume fell on the last day by -2 million shares and in total, 39 million shares were bought and sold for approximately ₹6.55 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock lies in the middle of a wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 17.62% during the next 3 months and, with a 90% probability hold a price between ₹188.65 and ₹209.56 at the end of this 3-month period.
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TATASTEEL.NS Signals & Forecast
There are mixed signals in the stock today. A sell signal was issued from a pivot top point on Thursday, April 25, 2024, and so far it has fallen -0.209%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). The Tata Steel Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at ₹164.54 and ₹164.17. A breakdown below any of these levels will issue sell signals. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss for Tata Steel Limited stock
On the downside, the stock finds support just below today's level from accumulated volume at ₹157.25 and ₹149.95. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Tata Steel Limited finds support just below today's level at ₹157.25. If this is broken, then the next support from accumulated volume will be at ₹149.95 and ₹149.70.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved ₹3.00 between high and low, or 1.81%. For the last week the stock has had daily average volatility of 2.57%.
Since the Tata Steel Limited has been rising for 6 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.
Our recommended stop-loss: ₹161.46 (-3.52%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 16 days ago.)
Trading Expectations (TATASTEEL.NS) For The Upcoming Trading Day Of Monday 20th
For the upcoming trading day on Monday, 20th we expect Tata Steel Limited to open at ₹167.08, and during the day (based on 14 day Average True Range), to move between ₹163.24 and ₹171.46, which gives a possible trading interval of +/-₹4.11 (+/-2.45%) up or down from last closing price. If Tata Steel Limited takes out the full calculated possible swing range there will be an estimated 4.91% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at ₹167.40 (0.03%) than the support at ₹157.25 (6.04%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Tata Steel Limited stock A Buy?
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Tata Steel Limited stock to perform well in the short-term.
Current score: 4.244 Buy Candidate Unchanged
Predicted Opening Price for Tata Steel Limited of Monday, May 20, 2024
| Fair opening price May 20, 2024 | Current price |
|---|---|
| ₹167.08 ( 0.159%) | ₹167.35 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for TATASTEEL.NS
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 170.08 | 1.63 % | |
| R2 | 168.94 | 0.95 % | ||
| R1 | 168.23 | 0.525 % | ||
| Current price: | 167.35 | |||
| Support | S1 | 165.94 | -0.84 % | |
| S2 | 165.23 | -1.27 % | ||
| S3 | 164.08 | -1.95 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 167.70 | 0.209 % | |
| R2 | 167.60 | 0.149 % | ||
| R1 | 167.40 | 0.0299 % | ||
| Current price | 167.35 | |||
| Support | S1 | 157.25 | -6.04% | |
| S2 | 149.95 | -10.40% | ||
| S3 | 149.70 | -10.55% |
TATASTEEL Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Jun 22, 2023 | Jun 22, 2023 | Jun 22, 2023 | ₹3.60 | 3.24% |
| 2 | Jun 15, 2022 | Jun 15, 2022 | Jun 15, 2022 | ₹5.10 | 5.31% |
| 3 | Jun 17, 2021 | Jun 17, 2021 | Jun 17, 2021 | ₹2.50 | 2.26% |
| 4 | Jun 29, 2020 | Aug 06, 2020 | Aug 24, 2020 | ₹1.00 | 2.33% |
| 5 | Apr 25, 2019 | Jul 04, 2019 | Jul 23, 2019 | ₹1.30 | 2.83% |
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