TATATECH - Swing Trade Analysis

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

Swing Trade Rating: 3.3

📊 Analysis Summary

TATATECH is currently in a technical downtrend, trading below both its 50 DMA and 200 DMA, with bearish indicators like a negative MACD and low RSI. Despite strong fundamentals and low debt, the stock lacks short-term momentum, making it a watchlist candidate rather than an immediate swing trade.

✅ Strengths

Strong ROCE (25.8%) & ROE (19.9%): Excellent operational efficiency.

Low Debt-to-Equity (0.07): Financially sound.

EPS of ₹16.9: Solid earnings base.

FII Buying (+1.77%): Positive institutional sentiment.

PEG Ratio (2.67): Indicates growth, though slightly expensive.

Industry PE (31.8) vs Stock PE (41.9): Premium valuation justified by returns.

⚠️ Weaknesses

MACD (-3.66): Bearish momentum.

RSI (44.6): Weak — no sign of reversal yet.

Trading Below DMA 50 & DMA 200: Downtrend confirmed.

Volume Below Average: Weak participation.

Qtr Profit Decline (-10%): Mild earnings contraction.

52w Index (20.8%): Far from yearly high — sentiment weak.

📈 Optimal Entry Price

Buy Zone: ₹680–₹695 Only if RSI rises above 50 and MACD starts converging. Wait for confirmation.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹740–₹760 Near 50 DMA — partial profit booking recommended.

Stop Loss: ₹675 Below recent support — exit if RSI drops below 40 or MACD diverges further.

🧠 Final Thoughts

TATATECH is fundamentally strong but technically weak in the short term. It’s not an ideal swing trade right now, but could become attractive if momentum indicators improve. Traders should wait for a technical reversal before entering, and existing holders should consider exiting near resistance or on further weakness.

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