TATATECH - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📉 Current Price: ₹687

📊 Optimal Entry Price: ₹675–685 (near RSI support and below 50 DMA)

📈 Suggested Exit (if holding): ₹715–735 (approaching 200 DMA resistance)

🔷 Positive

• 📈 Strong ROCE & ROE: ROCE at 66.9% and ROE at 58.6% reflect excellent capital efficiency
• 📉 Low Debt: Debt-to-equity ratio of 0.05 indicates strong financial discipline
• 📈 FII Buying: Foreign institutional holding increased by 0.38%
• 📊 PEG Ratio: 0.75 suggests reasonable valuation relative to growth
• 📈 EPS Strength: ₹16.3 supports long-term valuation

⚠️ Limitation

• 📉 MACD Negative: -0.45 signals weak short-term momentum
• 📉 RSI at 45.5: Neutral zone, lacks strong directional signal
• 📉 Below DMA Levels: Price trading below both 50 DMA (₹695) and 200 DMA (₹745)
• 📉 High P/E: 42.2 vs industry average of 34.0 suggests premium valuation
• 📉 DII Selling: Domestic institutional holding declined by 0.43%

🚫 Company Negative News

• 📉 Quarterly PAT Decline: Profit fell from ₹280 Cr to ₹133 Cr QoQ

✅ Company Positive News

• 🚗 EV & Automotive Tech: Continued growth in embedded systems and digital engineering for mobility
• 📈 Volume Strength: Current volume (5.65L) above 1-week average (5.11L)

🏭 Industry

• 💻 Tech & Engineering Services: Supported by global demand for digital transformation and automotive innovation
• 📉 Valuation Sensitivity: Sector trades at elevated multiples, vulnerable to earnings volatility

🧾 Conclusion

TATATECH presents a moderate swing trade setup with strong fundamentals and sector relevance. While technical indicators are mixed and recent earnings dipped, institutional interest and long-term potential support short-term upside. Entry near ₹675–685 is ideal, with exit near ₹715–735. Monitor MACD and RSI for confirmation before initiating trades.

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