Tata Steel corrects on profit selling

Tata Steel slipped 2.50% to Rs 112.90 on profit selling after recent steep gains.

Shares of the steel major jumped 10.39% in the past five sessions to end at Rs 115.80 yesterday, from its recent closing low of Rs 104.90 on 28 November 2022.

On the BSE, 16.62 lakh shares were traded in the counter so far compared with average daily volumes of 43.05 lakh shares in the past two weeks.

The stock hit a 52-week high of Rs 138.63 on 6 April 2022. The stock hit a 52-week low of Rs 82.71 on 23 June 2022.

The stock had outperformed the market over the past one month, rising 5.86% compared with 2.17% rise in the Sensex.

The scrip underperformed the market in past three months, adding 4.01% as against Sensex's 5.61% jump.

The scrip had also underperformed the market in past one year, rising 1.8% as against Sensex's 10.17% surge.

On the technical front, the stock's daily RSI (relative strength index) stood at 64.941. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock was trading above its 50-day, 100-day and 200-day simple moving average (SMA) placed at 103.62, 103.68 and 109.33, respectively. These levels will act as crucial support zones in near term.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 34 million tons per annum.

The company reported a 90% drop in consolidated net profit to Rs 1,297 crore in Q2 FY23 from Rs 12,548 crore in Q2 FY22. Total revenue from operations fell marginally, by 1%, to Rs 59,878 crore in the second quarter as compared with the same period last year.

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