Tata Steel Poised For Short-Term Rally: SEBI RA Deepak Pal Sees Breakout Above ₹154

Despite consistent declines over the past week, the stock managed to stay within range of its key EMAs. Technical charts suggest bullish momentum.

Tata Steel could see a short-term rally towards the ₹161-163 levels if it can break past and trade consistently above a key resistance zone of around ₹154, according to SEBI-registered analyst Deepak Pal.

At the time of writing, Tata Steel stock was up 2.9% at ₹156.75.

Pal noted that, based on the daily charts, Tata Steel is undergoing a mild corrective phase. Despite consistent declines over the past week, the stock has managed to stay within the range of its 14-day and 55-day exponential moving averages (EMAs), while holding above the crucial 200-day EMA support at ₹148.

On Monday, the stock opened and hit a low of ₹150.50, but recovered to close at ₹152.4. The intraday bounce suggests that selling pressure is currently limited, with buyers stepping in near support zones, the analyst added.

The 55-day EMA offers near-term support, while the 14-day EMA of around ₹154 poses a short-term resistance, according to Pal. On the downside, ₹148 remains a strong support level, aligning with the 200-day EMA and providing a solid technical foundation.

On the fundamental side, Tata Steel’s stock trades at a P/E ratio of 15–17x. The company has significantly reduced its debt-to-equity ratio, supported by strong integrated assets and a solid book value. The company offers a dividend yield of 2% - 3% and maintains a healthy return on equity (ROE) of 10% - 12%.

While global steel price uncertainties, European market pressures, and commodity volatility could add to short-term pressures, the company’s long-term prospects remain strong, driven by India’s infrastructure growth.

Year-to-date, the stock has gained 13.5%

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