Tata Steel has Gained 300% so Far! Beware of Volatility!

  • Market Overview
  • Editors Pick

NSE: TATASTEEL, with a current market price of 1034, the stock has risen over 312% from the slumps of March 2020, is it time for a quick retracement?

The iron & Steel Sector has been shining brightly from the beginning of this year. Since the market recovery of March 2020, Tata steel stock prices are in a Structural uptrend, the sharp rise has broken all the previous highs.

The Stock prices corrected for nearly 20%, twice in the last 12 months, but rebounded back each time indicating the strength of Buyers in the Uptrend. The prices fell, took support and then rebounded up. These turned out to be minor pullbacks that offered an excellent opportunity for Trend traders.

Tata Steel (NS: TISC ) Price Action Analysis on 1W Chart.

Tata Steel – Price Action Trading at Peak Value, Is the Party over for Bulls?

And now the stock is trading above its lifetime high of Rs. 901 since December 2007. As per the current situation, the trend looks a little riskier for taking new trades. The probability of a retracement is high.

The stock prices might take a dive and we might see some distribution of shares from large buyers. Prices could retest the previous Breakout levels around 800.

On the other hand, we are seeing a rising trend in volume. It indicates the increasing positions of Market participants. Mostly these have to be Uninformed retail traders trying to buy the stock at all-time highs, expecting a further increase in stock prices. They’re most likely to get trapped!

Based on the observations we can say that stock prices might undergo a retracement first and it might continue the uptrend.

Another important fact to consider is that we might see High volatility in the Price action due to upcoming fundamental reports. The company is expected to submit its financial results and earnings reports, this month. Apart from Trading at peak levels, this is another reason to expect Smart institutional investors to liquidate some of their positions from the Stock.

In either case, we can expect some interesting trading opportunities in Tata Steel in the upcoming weeks. Put the stock on your watch list and keep an eye on the Price Action.

Original Post

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • Venkat shanmugam @Venkat shanmugam
    Your website appears to have maligned by bad ..... please check.
    Like 0
  • Deva Deva @Deva Deva
    how to invest i don't have any bank account sir
    Like 0
  • Ankur Nigam @Ankur Nigam
    why all the shares are on high. where is supply? how it seems to be recorrecting values. influence to buying not on actual growth where is supply only in books. or really it not big basket game.
    Like 0
  • Mukundbhai Madlani @Mukundbhai Madlani
    Tata steel ,790, to 290. =500 +790=1290 it is targeting
    Like 0
  • Devendra Hinger @Devendra Hinger
    Price should correct from1131 to 850
    Like 0
  • Alia Jameen @Alia Jameen
    Good analysis sir, price action is behaving exactly after the peak
    Like 0
  • Alia Jameen @Alia Jameen
    Good analysis sir, price action is behaving exactly after the peak
    Like 0
  • Ashok Yadav @Ashok Yadav
    analysis without a clear conclusion is of no use....just a story
    Like 1
  • Saif Khan @Saif Khan
    so what to do hold or sold?
    Like 0
  • Saif Khan @Saif Khan
    so what to do hold or sold?
    Like 0
  • Vishal Kumar @Vishal Kumar
    Your analysis makes sense.....👍
    Like 3
  • jaikisha Jadwani @jaikisha Jadwani
    YesPoint to be given thoughtBut Comparing with March 2020 worst ever fall price is not .....
    Like 0
  • Royals United Charity RUC @Royals United Charity RUC
    HOS TATA STEEL TO MERGE 4 COMPANY ( TINPLATE / TATASTEELBSL/ TATAMETALIK / TATASPONGE) BIGEST CO, OF WORLDReports
    Like 6
  • anshul kudroli @anshul kudroli
    1200 plus level in future... steel sector will continue to rally further. Just Wait and Watch holding 100,000 shares at level of 700 rupee waiting to long term capital gain...
    Like 5
    • Mustaque Alam @Mustaque Alam
      Sir..how much is your portfolio ..u have made crazy investments in tata steel more than 7cr?
      Like 0
    • Mustaque Alam @Mustaque Alam
      Sir..how much is your portfolio ..u have made crazy investments in tata steel more than 7cr?
      Like 1
    • Ajit Pardeshi @Ajit Pardeshi
      @Mustaque Alam next Rakesh jhunjhunwala
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100
  • SP Singh @SP Singh
    It seems tata steel has become favourite share of operators . Need to stay alertand not fall in trap
    Like 2
  • Vishnu VV @Vishnu VV
    What about SAIL .... is it not on the same lines ? Please share your insights.
    Like 0
    • Pradip Bannore @Pradip Bannore
      I think SAIL has more potential at this juncture.  Before taking any decision to enter at the current leval on should have to check Fibonacci retracement indicator in monthlychart.
      Like 3
    • Ajit Pardeshi @Ajit Pardeshi
      SAIL is flying away. too rich for my blood but yes those who took risk have made a killing.
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100

Related Articles