TATACHEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | TATACHEM | Market Cap | 20,610 Cr. | Current Price | 809 ₹ | High / Low | 1,027 ₹ |
| Stock P/E | 30.9 | Book Value | 739 ₹ | Dividend Yield | 1.36 % | ROCE | 3.67 % |
| ROE | 2.81 % | Face Value | 10.0 ₹ | DMA 50 | 702 ₹ | DMA 200 | 785 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.43 % | PAT Qtr | 85.3 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 74.4 | MACD | 30.4 | Volume | 69,42,142 | Avg Vol 1Wk | 95,87,547 |
| Low price | 580 ₹ | High price | 1,027 ₹ | PEG Ratio | -2.53 | Debt to equity | 0.11 |
| 52w Index | 51.2 % | Qtr Profit Var | 18.4 % | EPS | 26.4 ₹ | Industry PE | 19.0 |
📈 Chart Patterns & Trend: TATACHEM is trading above both 50 DMA (₹702) and 200 DMA (₹785), with current price at ₹809. The stock is in an uptrend but showing signs of overbought conditions after a sharp rally from ₹580. Trend bias remains bullish but vulnerable to profit booking.
📊 Indicators: RSI at 74.4 indicates overbought territory, suggesting possible short-term correction. MACD positive at 30.4 confirms strong bullish crossover. Bollinger Bands show price near upper band, signaling stretched momentum.
🔎 Volume: Current volume (69.4 Lakh) is below average weekly volume (95.8 Lakh), showing reduced participation at higher levels.
🎯 Entry Zone: ₹780–₹795 (near 200 DMA support)
🚪 Exit Zone: ₹850–₹870 (resistance zone, short-term target)
Positive
- EPS of ₹26.4 supports earnings visibility.
- Dividend yield of 1.36% adds investor appeal.
- DII holdings increased by 0.43%, showing domestic confidence.
- Stock trading above both 50 DMA and 200 DMA confirms bullish structure.
Limitation
- High P/E of 30.9 compared to industry average (19.0).
- Weak ROCE (3.67%) and ROE (2.81%) reflect poor efficiency.
- PEG ratio of -2.53 indicates poor valuation alignment with growth.
- Sequential PAT decline (₹178 Cr. → ₹85.3 Cr.) raises concerns.
- FII holdings decreased by 0.36%, showing reduced foreign interest.
Company Negative News
- Quarterly profit decline highlights earnings volatility.
- Overbought RSI levels may trigger near-term correction.
Company Positive News
- Dividend yield and low debt-to-equity ratio (0.11) provide stability.
- Domestic institutional investors increased stake, reflecting confidence.
Industry
- Industry PE at 19.0 is lower than TATACHEM’s 30.9, highlighting premium valuation.
- Chemicals sector outlook remains stable with demand recovery in industrial and consumer segments.
Conclusion
TATACHEM is trending upward with strong bullish signals from MACD and moving averages, but RSI indicates overbought conditions. Entry near ₹780–₹795 offers tactical opportunity, with exit around ₹850–₹870. Fundamentals remain mixed, with dividend support but weak efficiency and profit decline requiring cautious positioning.
Would you like me to also prepare a short-term intraday setup for TATACHEM, with tighter entry/exit levels and stop-loss triggers, alongside this swing view?