The rally in Tata Steel came amid strong gains in the Nifty Metal Index, which rose 1.1% intraday and outperformed the broader market. The index tracked global steel futures higher following signs of recovery in China’s manufacturing output and improved demand from Western economies, adding to bullish sentiment.
Tata Steel shares have risen 6.5% over the past week and are up 2.4% in the last month. The stock has advanced 7.7% in the past three months and 20.6% in the last six months. However, over the past one year, the stock remains down 5.3%.
Global cues lift metals
The gains in Tata Steel and other metal counters came on the back of a rebound in global steel and iron ore prices, driven by improved factory data from China.
China’s factory activity returned to expansion in June, with both official PMI and Caixin PMI data showing the highest output reading since November 2024. In response, the most-traded September iron ore contract on China’s Dalian Commodity Exchange rose 1.69% to 722.5 yuan ($100.81) a metric ton. The benchmark August iron ore contract on the Singapore Exchange was up 1.82% at $94.9 a ton as of 0806 GMT.
Steel benchmarks on the Shanghai Futures Exchange also rallied. Rebar gained 2.61%, hot-rolled coil rose 2.24%, wire rod climbed 1.03%, and stainless steel added 1.08%.
Other Indian metal stocks participated in the rally. Among the top gainers, Welspun Corp surged 3.6%, National Aluminium Company (NALCO) advanced 2.11%, Hindalco gained 0.79%, and Vedanta rose 0.77%.
Tata Steel’s technical outlook strong
Tata Steel’s technical indicators reflect bullish momentum across timeframes. The stock is currently trading above all eight of its key simple moving averages, the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs, indicating bullish undertones in the short-term to long-term charts.
The Relative Strength Index (RSI) for Tata Steel stands at 60.7, indicating neutral-to-positive momentum, well within the typical range, as readings below 30 signal oversold conditions and above 70 indicate overbought levels.
Meanwhile, the Moving Average Convergence Divergence (MACD) is at 1.3 and remains above both the center and signal lines, reinforcing the stock’s ongoing bullish trend.
Also read | Tata Steel gets show cause notice over input tax credit of Rs 1,000 cr availed during FY19-23
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