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⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

TATACOMM - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

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Swing 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.

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