TATACHEM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

Technical Analysis Report for Tata Chemicals Ltd (TATACHEM)

• Trend Status: Reversing from highs, currently in a downtrend
• Moving Averages: Price below both 50 DMA (₹925) and 200 DMA (₹938) — bearish alignment
• RSI: 39.1 — weak momentum, approaching oversold territory
• MACD: Negative at -10.5 — bearish crossover, trend weakening
• Bollinger Bands: Price near lower band — oversold signal, possible technical bounce
• Volume: Below weekly average — declining participation

Entry & Exit Zones

• Support Levels: ₹875 (minor support), ₹840 (trendline), ₹756 (52-week low)
• Resistance Levels: ₹925 (DMA 50), ₹938 (DMA 200), ₹980 (gap zone)
• Optimal Entry: ₹875–₹890 (on confirmation of support)
• Optimal Exit: ₹925–₹980 (if reversal sustains)

Positive

• FII holding increased by 0.88% — foreign investor confidence
• EPS of ₹23.3 — stable earnings base
• Debt-to-equity ratio of 0.12 — low leverage

Limitation

• Price below key moving averages — weak technical structure
• MACD and RSI indicate bearish momentum
• Volume below average — weak participation
• ROCE (3.67%) and ROE (2.81%) — low operational efficiency

Company Negative News

• DII holding declined by 0.44% — slight domestic institutional outflow

Company Positive News

• Quarterly PAT improved from ₹97.0 Cr. to ₹307 Cr. — strong sequential growth
• Quarterly profit variation of 19.9% — healthy YoY growth

Industry

• Chemicals and materials — cyclical with demand linked to industrial and consumer sectors
• Industry P/E of 22.5 — TATACHEM trades at a premium (P/E of 39.5)

Conclusion

Tata Chemicals Ltd is currently reversing from its highs with weak technical indicators and declining volume. While fundamentals like EPS and FII interest are improving, bearish MACD and RSI suggest caution. Traders may consider entries near ₹875 with exits around ₹980, watching for MACD reversal and volume recovery to confirm trend strength.