TATACOMM - Swing Trade Analysis
Last Updated Time : 02 Aug 25, 12:58 am
Back to Swing Trade ListSwing Trade Rating: 4.0
📊 Analysis Summary
TATACOMM presents a technically stable and fundamentally strong swing trade setup, with high ROE and improving volume. Despite a dip in quarterly profit and elevated debt levels, the stock is trading near key moving averages and shows signs of a potential bounce.
✅ Strengths
ROE (55.2%): Exceptional shareholder return efficiency.
EPS of ₹59.4: Strong earnings base.
MACD (7.65): Bullish crossover — momentum building.
Volume Above Average: Current volume exceeds 1-week average — confirms interest.
Trading near DMA 50 & 200: Consolidation zone — potential breakout.
FII & DII Buying: Positive sentiment from institutions.
⚠️ Weaknesses
High Debt-to-Equity (4.09): Leverage risk — limits long-term stability.
Quarterly Profit Decline (-17.4%): Earnings contraction.
PEG Ratio (-13.8): Negative growth expectations.
High P/E (47.4) vs Industry PE (50.7): Slightly overvalued.
RSI at 51.0: Neutral — lacks strong momentum.
52w Index at 49.6%: Mid-range — not near breakout highs.
📈 Optimal Entry Price
Buy Zone: ₹1,700–₹1,715 Near DMA 50 — enter on RSI crossing 55 and MACD sustaining positive slope.
📉 Exit Strategy (If Already Holding)
Target Exit: ₹1,850–₹1,900 Resistance zone before major supply near ₹2,000.
Stop Loss: ₹1,660 Below DMA 200 — exit if RSI drops below 45 or MACD turns negative.
🧠 Final Thoughts
TATACOMM is a moderate-risk swing trade with strong technical support and institutional interest. While debt levels and recent profit dip warrant caution, the setup favors a short-term upside if momentum improves. Ideal for traders who prefer structured entries near moving averages.
Would you like a side-by-side comparison of all three Tata stocks for swing trading?
Edit in a page
Back to Swing Trade List