⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TATASTEEL - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for TATASTEEL based on the provided parameters
Swing Trade Rating: 3.9
| Stock Code | TATASTEEL | Market Cap | 2,50,332 Cr. | Current Price | 201 ₹ | High / Low | 224 ₹ |
| Stock P/E | 14.8 | Book Value | 109 ₹ | Dividend Yield | 1.99 % | ROCE | 14.0 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 205 ₹ | DMA 200 | 190 ₹ |
| Chg in FII Hold | 1.09 % | Chg in DII Hold | -0.31 % | PAT Qtr | 4,757 Cr. | PAT Prev Qtr | 4,086 Cr. |
| RSI | 42.0 | MACD | -3.30 | Volume | 2,34,00,193 | Avg Vol 1Wk | 2,68,88,339 |
| Low price | 150 ₹ | High price | 224 ₹ | PEG Ratio | 3.87 | Debt to equity | 0.51 |
| 52w Index | 67.7 % | Qtr Profit Var | 33.8 % | EPS | 12.9 ₹ | Industry PE | 18.8 |
📈 Optimal Entry Price: Around 195–200 ₹ (near 200 DMA support)
📉 Exit Strategy: If already holding, consider profit booking near 215–220 ₹ resistance zone. A stop-loss can be placed below 185 ₹.
Positive
- ✅ EPS of 12.9 ₹ supports earnings visibility.
- ✅ Dividend yield of 1.99% provides steady investor returns.
- ✅ ROCE (14.0%) and ROE (12.9%) show decent efficiency.
- ✅ Quarterly PAT improved to 4,757 Cr. from 4,086 Cr. (+33.8% growth).
- ✅ FII holdings increased (+1.09%), reflecting foreign investor confidence.
- ✅ Stock trading above 200 DMA (190 ₹), showing medium-term strength.
Limitation
- ⚠️ Current price (201 ₹) below 50 DMA (205 ₹), showing short-term weakness.
- ⚠️ RSI at 42.0 and MACD at -3.30 reflect bearish momentum.
- ⚠️ PEG ratio of 3.87 suggests expensive valuation relative to growth.
- ⚠️ DII holdings decreased (-0.31%), showing reduced domestic support.
- ⚠️ 52-week index at 67.7% reflects underperformance relative to highs.
Company Negative News
- 📉 Weak technical indicators (RSI and MACD) suggest short-term downside risk.
- 📉 Domestic institutional selling pressure.
Company Positive News
- 📈 Quarterly profit growth (+33.8%) supports earnings momentum.
- 📈 Strong foreign investor confidence with FII inflows.
- 📈 Dividend yield provides steady returns.
Industry
- 🏭 Industry PE is 18.8, TATASTEEL trades at 14.8 — undervalued relative to peers.
- 🏭 Steel sector benefits from infrastructure demand and global recovery cycles.
- 🏭 Sector outlook remains positive but cyclical risks persist.
Conclusion
🔎 TATASTEEL is a moderately strong swing trade candidate with undervaluation relative to peers and solid quarterly profit growth. Entry near 195–200 ₹ offers a favorable setup, while exits around 215–220 ₹ are advisable unless momentum improves significantly. Traders should monitor RSI and MACD closely for confirmation of reversal.
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