TATACHEM - IntraDay Trade Analysis with Live Signals
Back to ListIntraDay Trade Rating: 3.2
| Stock Code | TATACHEM | Market Cap | 16,567 Cr. | Current Price | 650 ₹ | High / Low | 1,027 ₹ |
| Stock P/E | 24.8 | Book Value | 739 ₹ | Dividend Yield | 1.69 % | ROCE | 3.67 % |
| ROE | 2.81 % | Face Value | 10.0 ₹ | DMA 50 | 716 ₹ | DMA 200 | 817 ₹ |
| Chg in FII Hold | -1.47 % | Chg in DII Hold | 0.23 % | PAT Qtr | 85.3 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 24.8 | MACD | -15.8 | Volume | 7,90,745 | Avg Vol 1Wk | 5,15,159 |
| Low price | 649 ₹ | High price | 1,027 ₹ | PEG Ratio | -2.04 | Debt to equity | 0.11 |
| 52w Index | 0.45 % | Qtr Profit Var | 18.4 % | EPS | 26.4 ₹ | Industry PE | 16.5 |
🔎 Analysis: TATACHEM is trading at ₹650, well below its 50 DMA (₹716) and 200 DMA (₹817), showing strong short-term weakness. RSI at 24.8 indicates oversold conditions, while MACD (-15.8) confirms bearish momentum. Volume is higher than the 1-week average, suggesting active participation, but fundamentals remain weak. Intraday trade is possible only with strict stop-loss discipline.
💰 Optimal Buy Price: ₹645–₹655 if price stabilizes near support.
📈 Profit Exit Levels: ₹670 (first target), ₹690 (second target near resistance).
📉 Stop-Loss: ₹640 to protect against downside risk.
⏱️ If Already Holding: Exit near ₹670 if momentum slows. Trail stop-loss below ₹645. Exit immediately if price breaks ₹640 with strong volume.
✅ Positive
- Dividend yield of 1.69% provides investor support.
- Book value at ₹739 is higher than current price, offering valuation cushion.
- DII holdings increased (+0.23%), reflecting domestic investor confidence.
- EPS at ₹26.4 supports long-term valuation strength.
⚠️ Limitation
- ROCE (3.67%) and ROE (2.81%) are very weak, showing poor efficiency.
- Stock P/E (24.8) is above industry average (16.5), making it relatively expensive.
- PEG ratio (-2.04) suggests unsustainable valuation relative to growth.
- Momentum indicators (RSI, MACD) remain bearish.
📉 Company Negative News
- Quarterly PAT declined sharply (₹85.3 Cr vs ₹178 Cr).
- FII holdings decreased (-1.47%), showing reduced foreign confidence.
📊 Company Positive News
- DII inflows support domestic sentiment.
- Dividend yield adds stability for investors.
- Book value higher than CMP provides margin of safety.
🧪 Industry
- Chemicals sector average P/E is 16.5, lower than TATACHEM’s 24.8.
- Sector growth remains cyclical, influenced by commodity demand and raw material prices.
📝 Conclusion
TATACHEM shows weak short-term momentum with RSI and MACD in bearish zones, and declining PAT. Fundamentals are modest, with dividend yield and book value as positives, but efficiency ratios remain poor. Intraday traders should only consider entry near ₹645–₹655 with strict stop-loss at ₹640. Profit-taking should be quick at ₹670–₹690. Momentum remains fragile, so cautious trading is strongly advised.
Would you like me to extend this into a peer benchmarking overlay with Gujarat Alkalies, Deepak Fertilisers, and Tata Salt (consumer division impact)? That way, you’ll see whether TATACHEM’s weakness is stock-specific or part of a broader chemicals sector trend.