TATAMOTORS - Swing Trade Analysis

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

Swing Trade Rating: 3.7

📊 Analysis Summary

TATAMOTORS is a fundamentally strong and undervalued stock with decent technical support, but recent profit volatility and weak momentum indicators suggest caution. It’s a moderate candidate for swing trading, especially if momentum improves.

✅ Strengths

Low P/E (9.04) vs Industry PE (31.6): Deeply undervalued.

ROCE (20.0%) & ROE (28.1%): Strong operational and financial efficiency.

EPS of ₹75.6: Robust earnings base.

PEG Ratio (0.14): Attractive valuation relative to growth.

Trading near DMA 50 (₹689): Potential support zone.

High Volume: ~66.9L — good liquidity for swing trades.

⚠️ Weaknesses

MACD (-0.64): Slightly bearish — momentum fading.

RSI at 52.4: Neutral — lacks conviction.

Trading Below DMA 200 (₹735): Downtrend not yet reversed.

Quarterly Profit Decline (-49.6%): Earnings volatility.

FII Selling (-0.67%): Mild foreign investor exit.

52w Index at 24.3%: Far from yearly high — weak relative strength.

📈 Optimal Entry Price

Buy Zone: ₹680–₹695 Near 50 DMA — enter on MACD crossover and RSI >55 with volume >80L.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹740–₹760 Resistance zone near 200 DMA.

Stop Loss: ₹660 Below recent support — exit if MACD deepens or RSI drops below 48.

🧠 Final Thoughts

TATAMOTORS offers a value-driven swing setup with strong fundamentals and decent technical support. While not explosive, it’s suitable for traders seeking a low-risk entry with moderate upside — provided momentum improves.

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