TATACHEM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 4.0

Here’s a detailed technical analysis of Tata Chemicals Ltd. (TATACHEM)

📊 Trend Overview

Current Trend: The stock is in a short-term uptrend, having rebounded from its 52-week low of ₹756 and currently trading at ₹989. It’s above both the 50 DMA (₹947) and 200 DMA (₹944), indicating bullish momentum.

Long-Term Trend: Still recovering, with price ~21% below its 52-week high of ₹1,247. The recent price action suggests a potential continuation if resistance levels are cleared.

📈 Moving Averages

50 DMA: ₹947

200 DMA: ₹944

Current Price: ₹989

Interpretation: Price is above both DMAs, confirming a bullish crossover. The tight clustering of the 50 and 200 DMAs around ₹945–₹950 forms a strong support base.

📉 MACD & RSI

MACD: Positive at 11.3, indicating bullish momentum.

RSI: At 62.0 — in a healthy range, not overbought, but showing strength.

Conclusion: Momentum indicators support a buy-on-dips strategy. RSI above 65 and MACD widening would reinforce bullish conviction.

📊 Volume Trends

Current Volume: 6.43 lakh

1-Week Avg Volume: 10.36 lakh

Interpretation: Volume is below average, suggesting moderate conviction. A breakout above ₹1,000–₹1,020 would need volume confirmation.

📉 Bollinger Bands

Price is likely near the upper band, signaling strength but also short-term resistance. A breakout with volume would confirm trend continuation.

📌 Support & Resistance Levels

Level Price (₹) Commentary

Support 1 950 DMA cluster, strong base

Support 2 910 Previous swing low

Resistance 1 1,020 Near-term resistance zone

Resistance 2 1,100–1,150 Intermediate swing highs

Resistance 3 1,247 52-week high

🎯 Entry & Exit Zones

Optimal Entry: ₹950–₹970 (on pullback with confirmation)

Exit Zone: ₹1,100–₹1,150 (partial profit booking), ₹1,240+ (final target if breakout sustains)

🔍 Summary

Trend: Trending upward

Momentum: Bullish

Bias: Buy on dips

Short-Term Strategy: Accumulate near ₹950–₹970 with breakout confirmation above ₹1,020. Target ₹1,100–₹1,240 over the next few weeks.

Let me know if you'd like a swing trade setup or visual chart overlay based on this!

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