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Tata Steel shares have been on a remarkable upswing, gaining 2.29% to reach ₹165.30 during Thursday's trading session. This marks the fifth consecutive day of gains for the stock, buoyed by a rally in the broader market. With a current market capitalization of ₹2.06 lakh crore, Tata Steel is certainly attracting attention.

Stock Performance Overview

The stock’s one-year beta indicates significant volatility, and its technical indicators show a Relative Strength Index (RSI) in a neutral zone, meaning it is neither overbought nor oversold. Tata Steel is also trading well above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, indicating a strong bullish trend. Notably, the stock has experienced a substantial rally of 28% over the past year, with an 18% gain in 2024 alone.

Analyst Perspectives

Investor sentiment is mixed among analysts. Vishnu Kant Upadhyay, AVP of Research and Advisory at Master Capital Services, remains optimistic about Tata Steel. He has set a target price of ₹176, suggesting a stop loss at ₹150. Upadhyay believes that the stock has recently broken out of a consolidation phase, supported by increased trading volumes and the stock's position above the 21-day Exponential Moving Average (EMA).

Conversely, Kushal Gandhi, a Technical Analyst at StoxBox, urges caution. He points out that the stock has retraced 22% from its all-time highs, indicating that while selling pressure might have eased, there are currently no strong reversal signals. Gandhi recommends holding off on purchasing at the present levels.

On a more positive note, Jigar S Patel, Senior Manager of Technical Research at Anand Rathi, highlights that Tata Steel has recently broken a key bearish trendline, which suggests a potential reversal. He has observed bullish divergence in the RSI, indicating a weakening of selling pressure. Patel recommends considering long positions in the ₹152-155 range, aiming for a target of ₹165 with a stop loss at ₹147.5.

Final Considerations for Investors

As Tata Steel continues its upward momentum, investors should weigh the differing opinions from analysts and make informed decisions based on their investment strategies. Consulting with a qualified financial advisor is advisable before making any significant investment decisions.

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