TATASTEEL - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📉 Current Price: ₹179

📊 Optimal Entry Price: ₹172–175 (near 50 DMA and RSI support zone)

📈 Suggested Exit (if holding): ₹185–187 (near 52-week high resistance)

🔷 Positive

• 📈 MACD Positive: 3.36 indicates bullish momentum
• 📊 Above DMA Levels: Price trading above both 50 DMA (₹172) and 200 DMA (₹160)
• 📈 Strong Institutional Interest: DII holding increased by 0.85%, FII by 0.07%
• 📈 Dividend Yield: 2.01% adds to investor appeal
• 📈 Consistent PAT Growth: PAT improved from ₹3,554 Cr to ₹3,693 Cr

⚠️ Limitation

• 📉 RSI at 57.7: Approaching overbought zone, limiting upside potential
• 📉 Volume Dip: Current volume (1.95 Cr) below 1-week average (2.70 Cr)
• 📉 Negative PEG Ratio: -0.63 implies weak earnings growth outlook
• 📉 Moderate ROCE & ROE: ROCE at 12.7% and ROE at 10.9% are decent but not exceptional

🚫 Company Negative News

• 📉 Growth Concerns: PEG ratio and modest quarterly profit variation (5.28%) suggest limited acceleration

✅ Company Positive News

• 🏗️ Steel Demand Recovery: Benefiting from infrastructure push and global commodity rebound
• 📈 EPS Strength: ₹11.3 supports valuation and earnings visibility

🏭 Industry

• 🏭 Metals & Mining Sector: Supported by global infrastructure demand and commodity cycle
• 📉 Valuation Advantage: P/E of 15.1 vs industry average of 22.1 suggests relative undervaluation

🧾 Conclusion

TATASTEEL presents a strong swing trade setup with bullish technicals, institutional support, and sector tailwinds. While growth indicators are mixed and RSI is nearing resistance, the stock’s momentum and valuation support short-term upside. Entry near ₹172–175 is ideal, with exit near ₹185–187. Monitor RSI and volume for confirmation before initiating trades.

I can chart TATASTEEL’s price action with support and resistance zones to help you time your trade more precisely.