Both companies are also grappling with margin pressures, delayed projects, and rising input costs.
The steel industry is facing fresh challenges as both international and local factors weigh on demand and sentiment.
SEBI-registered analyst Deepal Pal shared his assessment of Tata Steel and SAIL, pointing to pressure from global markets, domestic consumption trends, and technical signals.
Global and Domestic Drivers
China’s slowdown in real estate and manufacturing has pulled down global demand forecasts, Pal noted, while prices of rebar and hot-rolled coil on the Shanghai Futures Exchange dropped sharply, hitting Indian export sentiment.
He added that ongoing U.S. tariff talks on metals have also created uncertainty in global steel trade.
In India, Pal highlighted that monsoon-related delays have slowed infrastructure projects, while July auto sales were mixed, creating a softer patch for steel demand. He said inventories at mills remain high, adding to the selling pressure.
On company specifics, Pal pointed out that Tata Steel’s European operations are seeing margin stress from energy costs and wage hikes, with some capex delays also weighing on market confidence.
For SAIL, he observed that rising coking coal prices had driven margin contraction in the latest quarterly results.
Technical View
On Tata Steel, Pal noted that the 20-day moving average has fallen below the 50-day, with the relative strength index (RSI) dropping under 40 and the Moving Average Convergence Divergence (MACD) staying negative, showing strong bearish momentum.
He placed support levels around ₹152–150 and resistance near ₹160–162, cautioning that the stock may stay weak in the short term, though the longer trend holds as long as it remains above ₹150.
For SAIL, Pal said the stock continues to face selling pressure after failing to hold above the 55-day EMA, with MACD in deep negative territory and RSI near 37.
He identified support at ₹118–116 and resistance at ₹125–127, adding that long-term investors may wait for a clear reversal above ₹130 before re-entering.
Pal summed up by saying both stocks are under short-term pressure, though any recovery in global demand or a domestic infrastructure push could change the trend over the medium term.
On Stocktwits, retail sentiment for Tata Steel was ‘neutral’ with normal activity, while SAIL drew a ‘bearish’ tone on similar message volume.
While Tata Steel’s stock has risen 15% so far in 2025, SAIL’s stock has gained 9% over the same period.
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