Tata Steel Under Pressure: SEBI Analyst Flags Bearish Momentum Despite Long-Term Strength

The stock is trading near ₹155 after slipping below key short-term moving averages, with support at ₹148–₹152 and resistance at ₹160–₹165.

Tata Steel is under pressure as weak global demand and technical weakness weigh on the stock. 

SEBI-registered analyst Deepak Pal noted that the stock is trading at ₹155 with a sharp red candle showing selling pressure. Prices have slipped below the 20-day and 50-day moving averages, while remaining above the 200-day moving average, which acts as long-term support. 

He highlighted that the Parabolic Stop and Reverse (SAR) signals a downtrend, the Moving Average Convergence Divergence (MACD) is in the negative zone with a bearish crossover, and the Relative Strength Index (RSI) at 42 indicates neutral to weak momentum. 

Support is seen at ₹152–₹148, with resistance at ₹160–₹165.

Fundamental View

Pal underlined Tata Steel’s scale as one of India’s largest producers with operations in Europe and India. 

Positives include an expected recovery in infrastructure, auto, and real estate, supported by the government’s “Viksit Bharat 2047” plan. 

Negatives include weak global steel prices due to slowdowns in China and Europe, high debt levels, raw material price volatility, and margin pressure. He said the stock’s decline is also linked to falling international steel prices, a technical breakdown below key averages, and broad weakness in the metal index.

Outlook And Key Triggers

Looking ahead, Pal expects the stock to remain under pressure in the ₹148–₹165 range in the short term. 

Over the next 6–12 months, growth may be supported by infrastructure spending, housing demand, and a recovery in the auto and railway sectors, with potential outperformance if the steel cycle improves. 

He added that investors could look to accumulate between ₹148 and ₹152 for long-term gains, while short-term traders should wait for a reversal above ₹160. 

Upcoming triggers include the Union Budget, global steel price trends, second-quarter results due in October, and updates on Tata Steel Europe's restructuring.

What Is The Retail Mood?

On Stocktwits, retail sentiment for Tata Steel was ‘neutral’ amid ‘normal’ message volume.

Tata Steel’s stock has risen 13.5% so far in 2025.

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