TATAPOWER - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.9

📊 Swing Trade Analysis for TATAPOWER

TATAPOWER presents a moderately favorable swing trading setup. While the technical indicators and institutional interest are supportive, valuation and earnings volatility suggest a cautious, short-term approach.

✅ Strengths

Trend Support: Price is hovering around both 50 DMA (₹390) and 200 DMA (₹391), indicating a potential base for upward movement.

Momentum Indicators: RSI at 56.1 and MACD at 0.95 suggest mild bullish momentum.

Institutional Interest: FII holdings increased by 0.67%, showing foreign investor confidence.

Profitability: ROCE at 14.8% and ROE at 18.1% reflect decent operational efficiency.

Valuation Alignment: PEG ratio of 1.66 is acceptable for a growth-oriented utility stock.

EPS Strength: ₹9.12 EPS supports earnings quality.

⚠️ Weaknesses

High Valuation: P/E of 43.1 is significantly above the industry average of 21.6.

Earnings Volatility: PAT dropped from ₹409 Cr. to ₹520 Cr., but Qtr Profit Var is -29.4%, indicating inconsistency.

Volume Decline: Current volume is below the 1-week average, suggesting reduced short-term interest.

Low Dividend Yield: At 0.57%, it offers minimal income support.

High Debt: Debt-to-equity ratio of 1.09 is elevated for swing trading comfort.

Low 52w Index (39.6%): Indicates underperformance relative to its yearly high.

🎯 Optimal Entry Price

Entry Zone: ₹385–₹390

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

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹415–₹425

A reasonable upside before testing resistance near ₹430.

Stop-Loss: ₹375

Below recent support to protect against reversal.

🧠 Final Thought

TATAPOWER is a technically stable swing candidate with decent profitability and institutional backing. While valuation and earnings volatility are concerns, disciplined entry and exit can yield a short-term tactical gain. Best suited for traders who monitor momentum closely.

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