TATACONSUM - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.1

📊 Swing Trade Analysis for TATACONSUM

TATACONSUM presents a solid swing trading setup with strong technical momentum and earnings growth. While valuation is stretched and profitability is modest, the trend and institutional interest support a short-term tactical trade.

✅ Strengths

Bullish Momentum: RSI at 63.1 and MACD at 11.1 indicate strong upward momentum.

Trend Confirmation: Price is above both 50 DMA (₹1,087) and 200 DMA (₹1,071), confirming a bullish trend.

Earnings Surge: PAT jumped from ₹215 Cr. to ₹714 Cr., a 273% increase — a strong catalyst.

Low Leverage: Debt-to-equity ratio of 0.03 adds financial stability.

Institutional Interest: FII and DII holdings increased slightly, signaling steady confidence.

EPS Strength: ₹18.0 EPS supports earnings quality.

High 52w Index (70.2%): Indicates strong price performance relative to its yearly high.

⚠️ Weaknesses

High Valuation: P/E of 64.3 vs industry average of 19.2 and PEG of 6.49 suggest overvaluation.

Modest Profitability: ROCE at 10.0% and ROE at 7.84% are below ideal swing trade thresholds.

Volume Dip: Current volume is below the 1-week average, indicating reduced short-term interest.

Low Dividend Yield: At 0.73%, offers minimal income support.

🎯 Optimal Entry Price

Entry Zone: ₹1,100–₹1,115

A pullback near the 50 DMA offers a lower-risk entry with trend support and RSI cooling.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹1,180–₹1,200

A reasonable upside before testing resistance near ₹1,220.

Stop-Loss: ₹1,065

Below the 200 DMA to protect against reversal.

🧠 Final Thought

TATACONSUM is a technically strong swing candidate with earnings momentum and trend support. While valuation is rich and profitability modest, disciplined entry and exit can yield a rewarding short-term trade.

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