TATAELXSI - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📊 Swing Trade Analysis for TATAELXSI

TATAELXSI presents a technically neutral but fundamentally strong swing trade setup. While profitability and institutional interest are solid, momentum indicators and valuation suggest a cautious, tactical approach.

✅ Strengths

Strong Fundamentals: ROCE at 36.3% and ROE at 29.3% reflect excellent capital efficiency.

Low Leverage: Debt-to-equity ratio of 0.07 adds financial resilience.

Institutional Confidence: DII holdings increased by 1.25%, signaling domestic support.

EPS Strength: ₹120 EPS supports earnings quality.

Dividend Yield: 1.31% offers modest income support.

⚠️ Weaknesses

Bearish Momentum: MACD at -15.7 suggests short-term weakness despite RSI at 53.9.

Price Below Key Averages: Trading below both 50 DMA (₹5,772) and 200 DMA (₹6,131) signals a downtrend.

Earnings Decline: PAT dropped from ₹172 Cr. to ₹144 Cr., a 21.6% fall.

High Valuation: P/E of 47.9 vs industry average of 30.0 and PEG of 3.78 suggest overvaluation.

Low 52w Index (32.0%): Indicates significant underperformance relative to its yearly high.

🎯 Optimal Entry Price

Entry Zone: ₹5,650–₹5,700

A pullback near recent support offers a lower-risk entry if MACD flattens and RSI climbs above 58.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹5,950–₹6,050

A reasonable upside before testing resistance near the 200 DMA.

Stop-Loss: ₹5,500

Below recent support to protect against further downside.

🧠 Final Thought

TATAELXSI is a fundamentally strong but technically weak swing candidate. Best suited for tactical traders who can monitor momentum closely and exit quickly if signals deteriorate. Wait for MACD crossover and RSI strengthening before entering aggressively.

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