TATAELXSI - Swing Trade Analysis

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

Swing Trade Rating: 2.9

📊 Analysis Summary

TATAELXSI is a high-quality company with strong return metrics, but its current technical setup and extreme valuation make it unsuitable for swing trading right now. The stock is in a downtrend with weak momentum and limited volume support.

✅ Strengths

ROCE (60.0%) & ROE (39.3%): Outstanding operational and financial efficiency.

Debt-Free: Zero debt — excellent financial health.

Quarterly Profit Growth (36.5%): Strong earnings momentum.

DII Buying (+1.25%): Strong domestic institutional interest.

EPS of ₹16.4: Solid earnings base.

⚠️ Weaknesses

P/E of 372 vs Industry PE of 29.1: Extremely overvalued.

PEG Ratio (8.63): Expensive relative to growth.

MACD (-40.2): Bearish momentum.

RSI at 42.8: Weak — no sign of reversal.

Trading Below DMA 50 & 200: Downtrend confirmed.

Volume Below Average: Lack of buying interest.

52w Index at 33.2%: Far from yearly high — weak relative strength.

📈 Optimal Entry Price

Wait for Technical Reversal: Entry only if RSI crosses 50 and MACD flattens. Ideal buy zone: ₹6,050–₹6,100 with volume >1.3L.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹6,250–₹6,350 Near DMA 200 — short-term resistance zone.

Stop Loss: ₹5,900 Below recent support — exit if RSI drops below 40 or MACD worsens.

🧠 Final Thoughts

TATAELXSI is a premium stock with long-term potential, but its current technicals and valuation make it unsuitable for short-term swing trading. Traders should wait for a clear reversal or consider alternatives with better momentum and valuation.

Would you like to explore mid-cap tech stocks with stronger swing setups?

Edit in a page