TATACHEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | TATACHEM | Market Cap | 18,910 Cr. | Current Price | 743 ₹ | High / Low | 1,027 ₹ |
| Stock P/E | 28.9 | Book Value | 739 ₹ | Dividend Yield | 1.48 % | ROCE | 3.67 % |
| ROE | 2.81 % | Face Value | 10.0 ₹ | DMA 50 | 770 ₹ | DMA 200 | 861 ₹ |
| Chg in FII Hold | -1.47 % | Chg in DII Hold | 0.23 % | PAT Qtr | 178 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 48.9 | MACD | -10.9 | Volume | 2,79,282 | Avg Vol 1Wk | 3,20,065 |
| Low price | 692 ₹ | High price | 1,027 ₹ | PEG Ratio | -2.37 | Debt to equity | 0.11 |
| 52w Index | 15.2 % | Qtr Profit Var | 79.8 % | EPS | 26.4 ₹ | Industry PE | 17.5 |
📈 Chart Patterns & Trend: TATACHEM is trading at 743 ₹, below both the 50 DMA (770 ₹) and 200 DMA (861 ₹), indicating short-term and medium-term weakness. RSI at 48.9 suggests neutral momentum, neither overbought nor oversold. MACD at -10.9 shows bearish crossover, signaling downward bias. Bollinger Bands place price near the lower-middle range, hinting at consolidation with mild bearish undertone.
📊 Volume Trends: Current volume (2.79 lakh) is lower than the 1-week average (3.20 lakh), reflecting reduced participation and cautious sentiment among traders.
🎯 Momentum Signals:
- Price below both 50 DMA and 200 DMA confirms bearish bias.
- RSI neutral, suggesting sideways consolidation.
- MACD negative, reinforcing weak momentum.
💡 Entry Zone: 720–735 ₹ (near support).
🚪 Exit Zone: 860–870 ₹ (near 200 DMA resistance).
🔎 Overall Trend: The stock is consolidating near support levels with mild bearish undertone. Sustained recovery requires crossing 770–861 ₹ with volume support.
Positive
- EPS of 26.4 ₹ supports long-term valuation.
- DII holdings increased (+0.23%), showing domestic institutional confidence.
- Dividend yield of 1.48% provides steady income for investors.
- Low debt-to-equity ratio (0.11) reflects financial stability.
Limitation
- Stock trading below both 50 DMA and 200 DMA, confirming weakness.
- High P/E of 28.9 compared to industry PE of 17.5, suggesting premium valuation.
- ROCE (3.67%) and ROE (2.81%) are relatively weak, showing poor efficiency.
- PEG ratio of -2.37 highlights unsustainable valuation relative to growth.
Company Negative News
- Quarterly PAT declined from 307 Cr. to 178 Cr., showing earnings pressure.
- FII holdings decreased (-1.47%), reflecting reduced foreign investor confidence.
Company Positive News
- Quarterly profit variation shows rebound (+79.8%).
- DII support increased, signaling domestic confidence.
- Strong fundamentals with low leverage and stable dividend payout.
Industry
- Industry PE at 17.5 is lower than TATACHEM’s PE, highlighting premium valuation.
- Chemicals sector supported by demand in industrial and consumer applications.
- Sector consolidation favors established players like TATACHEM.
Conclusion
TATACHEM is consolidating near support levels with weak momentum signals. Entry near 720–735 ₹ offers limited risk, while resistance lies at 860–870 ₹. The stock needs stronger volume and a break above 770–861 ₹ to confirm bullish reversal. Long-term fundamentals remain stable, but short-term traders should be cautious until momentum improves.
I can also prepare a comparative snapshot of TATACHEM vs TVSMOTOR to highlight which one offers stronger near-term trading potential.