TARIL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.8

📉 TARIL is currently in a reversal phase with weak momentum and bearish technical indicators. Entry zone: ₹430–₹445; exit zone: ₹475–₹490. Watch for signs of stabilization near support before initiating positions.

📊 Technical Overview

• Price Action: Trading at ₹445, below both 50-DMA (₹490) and 200-DMA (₹479), indicating a bearish trend.
• RSI (25.1): Deeply oversold, suggesting potential for technical bounce but no confirmation yet.
• MACD (-12.4): Strong bearish crossover, confirming downward momentum.
• Bollinger Bands: Price near lower band, indicating oversold conditions with possible short-term support.
• Volume: Below 1-week average, showing reduced participation and weak conviction.
• Support Zones: ₹430 (S1), ₹410 (S2)
• Resistance Zones: ₹475 (R1), ₹490 (R2)

✅ Positive

• Strong ROCE (24.6%) and ROE (20.0%) reflect solid capital efficiency.
• PEG ratio of 0.43 indicates reasonable valuation relative to growth.
• EPS of ₹7.64 supports long-term earnings visibility.
• FII holdings increased (+0.27%), showing cautious foreign interest.

⚠️ Limitation

• Stock P/E (58.9) is above industry average (51.3), suggesting overvaluation.
• RSI and MACD both show strong bearish signals, limiting short-term upside.
• Volume trends are weak, reducing breakout potential.
• Dividend yield of 0.04% is negligible for income-focused investors.

📉 Company Negative News

• Quarterly PAT declined from ₹74.2 Cr. to ₹60.2 Cr., indicating earnings pressure.
• DII holdings decreased (-0.09%), reflecting reduced domestic institutional confidence.

📈 Company Positive News

• Quarterly profit variation of +227% YoY shows strong annual growth trajectory.
• Stock has rebounded ~25% from its 52-week low of ₹355.

🏢 Industry

• Industrial automation and infrastructure sectors are poised for long-term growth.
• Industry P/E of 51.3 reflects high growth expectations across peers.

🧭 Conclusion

• TARIL is in a reversal phase with bearish momentum and oversold technical indicators.
• Entry zone: ₹430–₹445; exit zone: ₹475–₹490 for short-term bounce trades.
• Long-term investors should wait for trend reversal confirmation before accumulating.