TATACHEM - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.2

📉 Current Price: ₹891

📊 Optimal Entry Price: ₹875–885 (near RSI support and recent volume base)

📈 Suggested Exit (if holding): ₹920–940 (approaching 50 & 200 DMA resistance)

🔷 Positive

• 📈 FII Buying: Foreign institutional holding increased by 0.88%
• 📉 Low Debt: Debt-to-equity ratio of 0.11 reflects strong financial discipline
• 📈 Dividend Yield: 1.23% adds to investor appeal
• 📊 EPS Strength: ₹26.4 supports long-term valuation

⚠️ Limitation

• 📉 MACD Negative: -11.8 signals bearish momentum
• 📉 RSI at 42.6: Neutral to weak zone, lacks strong directional signal
• 📉 Below DMA Levels: Price trading below both 50 DMA (₹921) and 200 DMA (₹937)
• 📉 Weak ROCE & ROE: ROCE at 3.67% and ROE at 2.81% are below ideal levels
• 📉 Negative PEG Ratio: -2.85 implies poor earnings growth outlook

🚫 Company Negative News

• 📉 Quarterly PAT Decline: Profit fell from ₹307 Cr to ₹178 Cr (down 42%)
• 📉 DII Selling: Domestic institutional holding declined by 0.44%

✅ Company Positive News

• 🧪 Specialty Chemicals Focus: Continued investment in high-margin segments like nutraceuticals and agrochemicals
• 📈 Volume Strength: Current volume (6.73L) above 1-week average (5.75L)

🏭 Industry

• 🏭 Chemicals Sector: Supported by industrial demand and export opportunities
• 📉 Valuation Pressure: Sector trading at elevated multiples amid cost volatility

🧾 Conclusion

TATACHEM presents a cautious swing trade setup with institutional interest and sector relevance. However, technical weakness, declining profitability, and valuation concerns suggest waiting for confirmation. Entry near ₹875–885 is ideal, with exit near ₹920–940. Monitor MACD and RSI for reversal signals before initiating trades.

I can chart TATACHEM’s price action with support and resistance zones to help you time your trade more precisely.