TATACOMM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | TATACOMM | Market Cap | 56,044 Cr. | Current Price | 1,963 ₹ | High / Low | 2,004 ₹ |
| Stock P/E | 72.4 | Book Value | 371 ₹ | Dividend Yield | 1.27 % | ROCE | 8.69 % |
| ROE | 7.36 % | Face Value | 10.0 ₹ | DMA 50 | 1,598 ₹ | DMA 200 | 1,643 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.65 % | PAT Qtr | 172 Cr. | PAT Prev Qtr | 306 Cr. |
| RSI | 80.1 | MACD | 81.7 | Volume | 26,71,604 | Avg Vol 1Wk | 16,74,502 |
| Low price | 1,322 ₹ | High price | 2,004 ₹ | PEG Ratio | -24.9 | Debt to equity | 0.52 |
| 52w Index | 94.0 % | Qtr Profit Var | 57.4 % | EPS | 27.9 ₹ | Industry PE | 44.1 |
📊 Chart Analysis: TATACOMM is trading at ₹1,963, well above both the 50 DMA (₹1,598) and 200 DMA (₹1,643), indicating strong bullish bias. RSI at 80.1 suggests overbought conditions. MACD at 81.7 is highly positive, confirming strong upward momentum. Bollinger Bands show price near the upper band, reflecting aggressive buying. Current volume (26.7L) is significantly higher than the 1-week average (16.7L), showing strong participation.
📈 Momentum Signals: Short-term momentum is strongly bullish, supported by MACD and price above moving averages. RSI indicates caution as the stock is overbought and may face near-term consolidation.
💹 Support & Resistance: Strong support lies near ₹1,643 (200 DMA) and ₹1,598 (50 DMA). Immediate resistance is at ₹2,004 (recent high). Optimal entry zone: ₹1,920–₹1,950. Exit zone: ₹1,990–₹2,010.
🔄 Trend Status: The stock is currently trending upward with strong momentum, though overbought RSI suggests possible short-term consolidation.
Positive
- ✅ EPS of ₹27.9 supports valuation strength.
- ✅ Dividend yield of 1.27% provides steady returns.
- ✅ PAT of ₹172 Cr. remains healthy despite sequential decline.
- ✅ DII holdings increased by 0.65%, showing domestic investor confidence.
Limitation
- ⚠️ RSI at 80.1 indicates overbought conditions, raising risk of pullback.
- ⚠️ Very high P/E of 72.4 compared to industry P/E of 44.1, suggesting premium valuation.
- ⚠️ PEG ratio of -24.9 indicates poor growth expectations.
- ⚠️ ROCE at 8.69% and ROE at 7.36% are modest efficiency metrics.
Company Negative News
- 📉 PAT declined from ₹306 Cr. to ₹172 Cr., showing earnings pressure.
- 📉 FII holdings decreased by -0.02%, reflecting reduced foreign investor interest.
Company Positive News
- 📈 Quarterly profit variation of 57.4% highlights strong year-on-year growth.
- 📈 Domestic institutional investors increased holdings, signaling confidence.
Industry
- 🌐 Telecom & digital services sector trading at industry P/E of 44.1, lower than TATACOMM’s P/E of 72.4, suggesting premium valuation.
- 🌐 Sector supported by rising demand for digital infrastructure, cloud services, and global connectivity.
Conclusion
📌 TATACOMM is trending upward, trading well above key moving averages with strong MACD and volume support. Entry around ₹1,920–₹1,950 with exit near ₹1,990–₹2,010 offers a favorable short-term setup. Fundamentals show strong profit growth and dividend yield, but high valuation multiples, overbought RSI, and modest efficiency metrics are concerns. The stock may consolidate near resistance at ₹2,004 before resuming its trend.
For broader context, you could explore a telecom sector outlook or compare TATACOMM with peers through a valuation comparison.