TATATECH - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.3

📊 Swing Trade Analysis for TATATECH

TATATECH offers a compelling swing trade opportunity, backed by strong fundamentals, improving technical momentum, and institutional accumulation. While recent profit volatility and proximity to resistance levels suggest caution, the overall setup favors a short-term tactical trade.

✅ Strengths

Exceptional Profitability: ROCE at 66.9% and ROE at 58.6% reflect outstanding operational efficiency.

Valuation Comfort: P/E of 44.8 is above industry average (32.2), but PEG of 0.79 suggests fair pricing relative to growth.

Technical Momentum: RSI at 65.6 and MACD at 7.13 indicate bullish momentum approaching breakout territory.

Trend Support: Price is above the 50 DMA (₹695) and approaching the 200 DMA (₹763), suggesting a potential breakout.

Institutional Accumulation: FII holdings increased by 1.77% and DII by 0.83%, signaling strong investor confidence.

Low Leverage: Debt-to-equity ratio of 0.05 adds financial resilience.

Volume Strength: Current volume exceeds the 1-week average, confirming active participation.

⚠️ Weaknesses

Earnings Volatility: PAT dropped from ₹280 Cr. to ₹144 Cr., a 41.7% decline, raising short-term caution.

High P/E: Though justified by growth, it remains elevated compared to peers.

Low 52w Index (22.6%): Indicates significant underperformance relative to its yearly high of ₹1,136.

🎯 Optimal Entry Price

Entry Zone: ₹700–₹710

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

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹750–₹770

A reasonable upside before testing resistance near the 200 DMA.

Stop-Loss: ₹675

Below the 50 DMA to protect against reversal.

🧠 Final Thought

TATATECH is a fundamentally strong swing candidate with bullish technicals and institutional backing. While earnings volatility and valuation require disciplined risk management, the setup favors a short-term tactical trade with clear entry and exit levels.

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