TATACOMM - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.8

📊 Swing Trade Analysis for TATACOMM

TATACOMM offers a technically stable but fundamentally stretched swing trading setup. While short-term indicators and institutional interest support a tactical trade, valuation and profitability concerns suggest caution.

✅ Strengths

Technical Momentum: RSI at 59.5 and MACD at 6.57 indicate bullish momentum with room to run.

Trend Confirmation: Price is above both 50 DMA (₹1,643) and 200 DMA (₹1,669), signaling a short-term uptrend.

Volume Strength: Current volume exceeds the 1-week average, showing active participation.

Institutional Confidence: FII and DII holdings increased slightly, suggesting steady interest.

Dividend Yield: 1.48% offers modest income support.

EPS Strength: ₹29.7 EPS supports earnings quality.

⚠️ Weaknesses

High Valuation: P/E of 95.6 vs industry average of 46.0 and PEG of -4.91 suggest overvaluation and poor growth alignment.

Weak Profitability: ROCE at 6.39% and ROE at 5.93% are below ideal swing trade thresholds.

Earnings Decline: Qtr Profit Var of -27.3% indicates recent earnings softness.

Low 52w Index (44.4%): Reflects underperformance relative to its yearly high.

🎯 Optimal Entry Price

Entry Zone: ₹1,650–₹1,670

A pullback near the 200 DMA offers a lower-risk entry with trend support.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹1,740–₹1,780

A reasonable upside before testing resistance near ₹1,800.

Stop-Loss: ₹1,620

Below the 50 DMA to protect against reversal.

🧠 Final Thought

TATACOMM is a technically sound swing candidate with modest institutional support and momentum. However, valuation and profitability concerns suggest a disciplined, short-term approach. Best suited for tactical traders who monitor momentum closely.

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