TARIL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.2

📈 Technical Analysis

• Chart Patterns: TARIL is trading near the lower end of its 52-week range (294 ₹ vs 650 ₹), showing weakness and bearish bias.
• Moving Averages: Current price (294 ₹) is below both 50 DMA (340 ₹) and 200 DMA (427 ₹), confirming downward pressure.
• RSI: At 45.2, RSI indicates weak momentum, neither oversold nor strong enough for bullish reversal.
• MACD: Negative at -19.8, signaling bearish continuation.
• Bollinger Bands: Price near lower band, suggesting oversold condition and potential minor rebound.
• Volume Trends: Current volume (48.9L) is significantly lower than average weekly volume (2.23Cr), showing reduced participation and weak conviction.

🎯 Momentum & Trade Zones

• Support Levels: 280 ₹ immediate support, 250 ₹ strong support, and long-term support at 230 ₹.
• Resistance Levels: 340 ₹ (50 DMA) and 427 ₹ (200 DMA).
• Entry Zone: Accumulate cautiously near 280–300 ₹ if rebound signals appear.
• Exit Zone: Short-term exit near 330–340 ₹; medium-term exit near 420–430 ₹.
• Trend: Stock is currently reversing downward with weak momentum, possible consolidation near support levels.

✅ Positive

• Strong ROCE (24.6%) and ROE (20.0%).
• PEG ratio at 0.32 indicates attractive valuation relative to growth.
• EPS at 6.80 ₹ reflects earnings base.
• FII holding increased slightly (+0.27%).

⚠️ Limitation

• Stock trading below both 50 & 200 DMA, confirming bearish trend.
• Dividend yield at only 0.07%, offering minimal shareholder return.
• 52-week index at only 15.2%, reflecting severe underperformance.
• Volume significantly lower than average, showing weak investor interest.

📉 Company Negative News

• Quarterly PAT dropped sharply from 60.2 Cr. to 16.8 Cr.
• Quarterly profit variation at -60.1%, highlighting earnings weakness.
• DII holding reduced by -0.09%, showing weaker domestic institutional confidence.

📊 Company Positive News

• FII holding increased slightly (+0.27%).
• Strong ROCE and ROE indicate operational efficiency despite earnings decline.
• PEG ratio suggests valuation is not overstretched relative to growth potential.

🏭 Industry

• Industry P/E at 43.9, close to TARIL’s 43.8, suggesting fair valuation relative to peers.
• Sector outlook remains steady, but company-specific earnings weakness overshadows industry strength.

📝 Conclusion

• TARIL is in a bearish reversal phase, trading below key moving averages.
• Weak momentum and declining profits weigh on outlook, though valuation metrics remain attractive.
• Best strategy: cautious accumulation near 280–300 ₹ with strict stop-loss; exit near 330–340 ₹.
• Medium-term outlook cautious; recovery depends on earnings improvement and price sustaining above 340–427 ₹ resistance levels.