TATACHEM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

📊 Chart Patterns: TATACHEM is trading below both its 50 DMA (827 ₹) and 200 DMA (899 ₹), showing weakness. Support lies near 745 ₹, while resistance is around 827–899 ₹. The broader chart suggests a downward trend with consolidation near lows.

📈 Moving Averages: Current price (763 ₹) is below both 50 DMA and 200 DMA, signaling bearish momentum.

📉 RSI: At 25.1, RSI is in oversold territory, suggesting weak momentum but potential for a short-term bounce.

📉 MACD: Strongly negative (-25.9), confirming bearish crossover and continued downside pressure.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion in the short term.

📊 Volume Trends: Current volume (2,39,933) is slightly below average weekly volume (2,60,875), showing reduced participation and lack of strong buying interest.

🚦 Momentum Signals: Short-term momentum remains bearish. A bounce may occur near 745 ₹, but recovery requires crossing 827–899 ₹.

🎯 Entry Zone: 745–760 ₹ (near support).

🎯 Exit Zone: 827–899 ₹ (resistance at 50 & 200 DMA).

📌 Trend Status: The stock is consolidating with bearish bias, not yet reversing into an uptrend.

Positive

• Dividend yield of 1.47% provides steady income to shareholders.
• Low debt-to-equity ratio (0.11) ensures financial stability.
• FII holdings increased by 0.88%, showing foreign investor confidence.

Limitation

• Weak ROCE (3.67%) and ROE (2.81%) indicate poor capital efficiency.
• PEG ratio of -2.43 suggests negative growth prospects.
• Stock trading below both 50 & 200 DMA indicates weak technical strength.

Company Negative News

• PAT declined sharply from 307 Cr. to 178 Cr. sequentially.
• DII holdings decreased by -0.44%, showing weaker domestic institutional support.

Company Positive News

• EPS of 26.4 ₹ reflects consistent earnings despite quarterly slowdown.
• FII inflows highlight confidence in long-term growth potential.

Industry

• Industry P/E at 20.0 indicates moderate valuation compared to TATACHEM’s higher levels.
• Chemical sector remains cyclical but supported by demand in industrial and consumer applications.

Conclusion

⚖️ TATACHEM is consolidating with bearish bias, trading below key moving averages. Short-term traders may consider entry near 745–760 ₹ with exit around 827–899 ₹. Long-term investors should be cautious due to weak profitability and poor efficiency metrics, but dividend yield and foreign investor support provide some resilience.