TATASTEEL - Swing Trade Analysis

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

Swing Trade Rating: 4.1

📊 Analysis Summary

TATASTEEL is currently showing strong short-term momentum supported by a sharp rebound in quarterly profits, high trading volume, and proximity to its 52-week high. While its valuation and return ratios are not ideal, the technical setup favors a bullish swing trade.

✅ Strengths

Quarterly Profit Growth (+90.9%): Strong earnings recovery.

MACD (1.03): Positive — bullish momentum signal.

RSI at 53.8: Neutral-to-bullish — room for upside.

Trading Above DMA 50 (₹158) & DMA 200 (₹151): Uptrend confirmed.

High Volume (~1.59 Cr): Strong liquidity and participation.

DII Buying (+1.59%): Institutional support.

Dividend Yield (2.23%): Attractive for short-term holders.

Near 52-week High (₹170): Breakout potential.

⚠️ Weaknesses

High P/E (60.8) vs Industry PE (22.4): Overvalued.

ROCE (8.83%) & ROE (3.62%): Weak capital efficiency.

PEG Ratio (-1.08): Indicates negative growth expectations.

Debt-to-Equity (1.04): Elevated leverage.

FII Selling (-1.07%): Mild foreign investor exit.

EPS of ₹2.74: Low relative to price.

📈 Optimal Entry Price

Buy Zone: ₹158–₹163 Enter on MACD slope rising and RSI crossing 56 with volume >1.6 Cr.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹168–₹172 Near 52-week high — consider booking profits or trailing stop-loss.

Stop Loss: ₹152 Below 200 DMA — exit if RSI drops below 50 or MACD flattens.

🧠 Final Thoughts

TATASTEEL offers a momentum-driven swing trade opportunity with strong technical support and volume. While fundamentals are mixed, the short-term setup favors a bullish move — ideal for traders targeting breakout plays with disciplined risk management.

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