TATASTEEL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.1

📊 Swing Trade Analysis for TATASTEEL

TATASTEEL presents a strong short-term swing trading setup, driven by solid technical momentum, reasonable valuation, and institutional support. While profitability is moderate and PEG is negative, the stock is nearing its 52-week high with bullish indicators.

✅ Strengths

Technical Momentum: RSI at 67.4 and MACD at 3.31 signal strong bullish momentum, approaching breakout territory.

Trend Confirmation: Price is above both 50 DMA (₹162) and 200 DMA (₹154), confirming a sustained uptrend.

Valuation Comfort: P/E of 14.5 is well below the industry average of 23.1, suggesting relative undervaluation.

Profit Consistency: PAT increased from ₹3,554 Cr. to ₹3,693 Cr., showing stable earnings.

Institutional Confidence: DII holdings increased by 1.59%, a strong signal of domestic support.

Dividend Yield: 2.09% offers modest income support.

High 52w Index (98.3%): Indicates strong price performance relative to its yearly high.

⚠️ Weaknesses

FII Pullback: Decline of 1.07% in FII holdings may reflect foreign caution.

Negative PEG (-0.61): Suggests valuation may not be well-aligned with growth expectations.

Moderate Profitability: ROCE at 12.7% and ROE at 10.9% are decent but not exceptional.

Volume Slightly Below Average: Current volume is marginally lower than the 1-week average.

🎯 Optimal Entry Price

Entry Zone: ₹165–₹168

A minor pullback near the 50 DMA offers a lower-risk entry with trend support and RSI cooling.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹178–₹182

A reasonable upside before testing resistance beyond the 52-week high.

Stop-Loss: ₹158

Below the 200 DMA to protect against reversal.

🧠 Final Thought

TATASTEEL is a technically strong swing candidate with valuation comfort and institutional support. While growth metrics are mixed, the setup favors a short-term tactical trade with disciplined entry and exit.

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