TATAINVEST - Swing Trade Analysis

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

Swing Trade Rating: 3.1

📊 Analysis Summary

TATAINVEST is a low-volatility, fundamentally stable stock with limited short-term upside. While technical indicators show mild bullishness, the extremely high P/E and weak return ratios make it a neutral candidate for swing trading — best suited for cautious entries.

✅ Strengths

MACD (7.77): Bullish crossover — momentum building.

RSI at 52.9: Neutral-to-positive — potential for upward move.

Trading Above DMA 50 & 200: Technically stable.

Debt-Free: Zero leverage — strong balance sheet.

EPS of ₹61.7: Solid earnings base.

Book Value of ₹6,145: Trading close to intrinsic value.

⚠️ Weaknesses

P/E of 109 vs Industry PE of 26.1: Severely overvalued.

ROCE (1.21%) & ROE (1.02%): Very weak capital efficiency.

PEG Ratio (8.15): Expensive relative to growth.

Dividend Yield (0.40%): Low for a holding company.

Quarterly Profit Decline (-37.6%): Earnings contraction.

Low Volume: ~36K — lacks liquidity for active swing trading.

52w Index at 53.6%: Mid-range — no breakout momentum.

📈 Optimal Entry Price

Buy Zone: ₹6,600–₹6,650 Near DMA 50 — enter only if volume improves and RSI crosses 55.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹6,950–₹7,050 Resistance zone before major supply near ₹7,200.

Stop Loss: ₹6,500 Below DMA 200 — exit if MACD turns negative or RSI dips below 50.

🧠 Final Thoughts

TATAINVEST is a low-risk but low-reward swing candidate, ideal for conservative traders. The lack of momentum and high valuation limit upside potential. Best to monitor for volume spikes or consider more liquid alternatives with stronger technical setups.

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