Tata Steel’s share price has plummeted [1] over 30% from its 52-week high, raising concerns among investors about whether to buy, sell, or hold their positions. The decline comes amid tariff uncertainties and a 5% drop in consolidated steel production, which fell to 7.45 million tonnes in Q4 FY25, largely due to restructuring efforts in the company’s UK operations.
Despite the price slump, Tata Steel reported a 5.34% growth in consolidated sales, reaching 8.28 million tonnes in Q4 FY25, compared to sales of 7.86 million tonnes in the same quarter of the previous fiscal year (2023-24). For the entirety of FY25, the company’s sales grew by 6% to 30.86 million tonnes, up from 29.16 million tonnes in FY24. Domestic deliveries also rose to approximately 21 million tonnes from 19.91 million tonnes in the previous year, capitalizing on the steady growth in domestic steel demand. For the quarter, domestic deliveries increased to 5.6 million tonnes, up from 5.42 million tonnes.
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, stated that amidst the tariff turmoil, the metals sector has seen a sharp sell-off, and Tata Steel has corrected sharply in recent days, with momentum remaining negative. “For short-term traders, we may continue to see underperformance, and they can consider exiting. However, in the long term, the next key support is in the zone of ₹115-₹120, where traders can look to accumulate in a staggered manner or average their existing positions,” Bhosale advised.
Adding on, Riyank Arora, a Technical Analyst at Mehta Equities Ltd, highlighted that Tata Steel’s share price has corrected 30.25% from its 52-week high and is currently trading at ₹129. With major support at ₹120 and immediate resistance around ₹140, the trend appears sideways in the near term, according to him. “Investors can consider holding existing positions and accumulating slowly on dips, but only with a strict stop loss below ₹120. Caution is advised as the stock consolidates within this range,” Arora warned.
With Tata Steel’s share price experiencing significant volatility, investors are weighing short-term risks against long-term potential. While some analysts suggest cautious accumulation, others warn of continued downside pressure. Experts advise investors to consult certified financial professionals before making any decisions.
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[1] Tata Steel share price falls over 30% from 52-week high. Should you buy, sell or hold? https://www.livemint.com/market/stock-market-news/tata-steel-share-price-falls-over-30-from-52-week-high-should-you-buy-sell-or-hold-11744089579937.html