TATAMOTORS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📊 Swing Trade Analysis for TATAMOTORS

TATAMOTORS presents a strong swing trading setup, combining solid fundamentals with favorable technical indicators. The recent earnings surge and valuation support make it attractive for a short-term tactical trade.

✅ Strengths

Earnings Momentum: PAT jumped from ₹1,576 Cr. to ₹5,358 Cr., a 142% increase — a powerful catalyst.

Valuation Edge: P/E of 29.6 is below the industry average of 41.2, and PEG of 0.38 suggests undervaluation relative to growth.

Profitability: ROCE at 20.3% and ROE at 17.9% reflect strong operational efficiency.

Technical Setup: Price is above the 50 DMA (₹690) and approaching the 200 DMA (₹720), indicating a potential breakout.

Momentum Indicators: RSI at 57.9 and MACD at 10.4 show bullish momentum.

Volume Surge: Current volume significantly exceeds the 1-week average, confirming active participation.

Low Leverage: Debt-to-equity ratio of 0.27 adds financial stability.

⚠️ Weaknesses

FII Sentiment: Slight decline in FII holdings (-0.67%) may reflect foreign caution.

Modest Dividend Yield: At 0.84%, it offers limited income support.

52w Index at 37.8%: Indicates the stock is still far from its yearly high of ₹1,000.

🎯 Optimal Entry Price

Entry Zone: ₹695–₹705

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

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹740–₹760

A reasonable upside before testing resistance near ₹780.

Stop-Loss: ₹675

Below the 50 DMA to protect against reversal.

🧠 Final Thought

TATAMOTORS is a fundamentally and technically strong swing candidate. With earnings momentum, valuation comfort, and trend support, it’s well-positioned for a short-term trade. Ideal for traders seeking a balance of growth and tactical timing.

Edit in a page