TATAPOWER - Swing Trade Analysis

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

Swing Trade Rating: 3.5

📊 Analysis Summary

TATAPOWER is a technically stable and moderately undervalued stock with consistent earnings and institutional buying. While momentum indicators are neutral, its position near key moving averages and strong volume make it a decent candidate for swing trading, especially on a breakout confirmation.

✅ Strengths

EPS of ₹12.4: Solid earnings base.

Quarterly Profit Stability: ₹1,031 Cr in both quarters — consistent performance.

PEG Ratio (1.66): Reasonable valuation relative to growth.

FII Buying (+0.67%): Positive institutional sentiment.

Trading near DMA 50 (₹399) & DMA 200 (₹393): Strong technical support.

Volume Above Average: ~55L — good liquidity.

⚠️ Weaknesses

High P/E (34.2) vs Industry PE (17.9): Overvalued.

ROCE (10.8%) & ROE (11.0%): Moderate efficiency.

MACD (-0.02): Flat — no clear momentum.

RSI at 48.4: Neutral — lacks strength.

Debt-to-Equity (1.75): High leverage — financial risk.

Dividend Yield (0.56%): Low for a utility stock.

52w Index at 43.6%: Mid-range — not near breakout highs.

📈 Optimal Entry Price

Buy Zone: ₹395–₹405 Enter on RSI crossing 52 and MACD turning positive with volume >60L.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹430–₹445 Resistance zone before major supply near ₹460.

Stop Loss: ₹385 Below 200 DMA — exit if RSI drops below 45 or MACD turns negative.

🧠 Final Thoughts

TATAPOWER offers a low-risk swing setup with solid technical support and consistent earnings. While not a high-momentum play, it’s suitable for traders looking for a stable entry with moderate upside — especially if momentum improves.

Would you like to explore other energy sector stocks with stronger breakout potential?

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