Stocktwits - Tata Steel (NSE:TISC)’s stock price is approaching its critical support level between ₹133 and ₹136 ahead of its fourth-quarter (Q4) earnings release, according to SEBI-registered analyst Rohit Mehta.
The zone has served as a base for demand historically and can facilitate a recovery if trading volumes provide support, Mehta said.
At the time of writing, Tata Steel shares were trading at ₹150.79, up 5.61% for the day.
Mehta’s technical analysis reveals a rounded bottom formation which indicates potential long-term accumulation leading to a possible bullish breakout.
The stock continues to trade about 18% below its June 2024 peak of ₹180.98, which may present resistance against any market rally.
Mehta flagged declining financial performance as sales decreased by 3.01% year-over-year and operating profit dropped 5.76% during December 2024.
The figures for profit before tax and earnings per share dropped at an increased rate, which indicates that the company is witnessing margin compression and diminished profitability.
Mehta observed institutional flows remained marginally positive during the March 2025 quarter as domestic institutional investors expanded their share from 23.52% to 24.48%, while foreign investors reduced their holdings.
Any upside potential is heavily dependent on positive earnings surprises paired with increased volume near support levels, Mehta noted.
The analyst said that the ₹180 zone may regain significance if prices stay above resistance, while steel sector trends and global economic conditions continue to shape market views.
On Stocktwits, retail sentiment was ‘neutral’ amid ‘low’ message volume.
The stock has risen 10.3% so far in 2025.