TATACOMM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | TATACOMM | Market Cap | 45,732 Cr. | Current Price | 1,605 ₹ | High / Low | 2,004 ₹ |
| Stock P/E | 64.8 | Book Value | 355 ₹ | Dividend Yield | 1.56 % | ROCE | 6.39 % |
| ROE | 5.93 % | Face Value | 10.0 ₹ | DMA 50 | 1,730 ₹ | DMA 200 | 1,733 ₹ |
| Chg in FII Hold | 0.85 % | Chg in DII Hold | -0.54 % | PAT Qtr | 306 Cr. | PAT Prev Qtr | 155 Cr. |
| RSI | 37.3 | MACD | -65.2 | Volume | 2,56,423 | Avg Vol 1Wk | 4,16,710 |
| Low price | 1,291 ₹ | High price | 2,004 ₹ | PEG Ratio | -3.32 | Debt to equity | 0.55 |
| 52w Index | 44.0 % | Qtr Profit Var | 127 % | EPS | 46.4 ₹ | Industry PE | 39.9 |
📈 Chart Patterns & Trend: TATACOMM is trading at 1,605 ₹, below both the 50 DMA (1,730 ₹) and 200 DMA (1,733 ₹), indicating short-term and medium-term weakness. RSI at 37.3 suggests the stock is approaching oversold territory. MACD at -65.2 confirms strong bearish momentum. Bollinger Bands place price near the lower band, signaling weakness but potential short-term support.
📊 Volume Trends: Current volume (2.56 lakh) is lower than the 1-week average (4.16 lakh), reflecting reduced participation and cautious sentiment among traders.
🎯 Momentum Signals:
- Price below both 50 DMA and 200 DMA confirms bearish bias.
- RSI near oversold zone may trigger a technical bounce.
- MACD negative, reinforcing downward momentum.
💡 Entry Zone: 1,580–1,600 ₹ (near recent support).
🚪 Exit Zone: 1,720–1,740 ₹ (near 50 DMA resistance).
🔎 Overall Trend: The stock is reversing from highs and currently in a bearish phase. Sustained recovery requires crossing 1,730–1,733 ₹ with volume support.
Positive
- Quarterly PAT improved significantly (306 Cr. vs 155 Cr.), showing earnings growth.
- EPS of 46.4 ₹ supports long-term valuation.
- Dividend yield of 1.56% provides steady income for investors.
- FII holdings increased (+0.85%), showing foreign investor confidence.
Limitation
- Stock trading below both 50 DMA and 200 DMA, confirming weakness.
- High P/E of 64.8 compared to industry PE of 39.9, suggesting premium valuation.
- ROCE (6.39%) and ROE (5.93%) are relatively weak, showing modest efficiency.
- DII holdings decreased (-0.54%), reflecting reduced domestic institutional support.
Company Negative News
- Stock price corrected sharply from highs of 2,004 ₹ to 1,605 ₹.
- MACD strongly negative, signaling bearish momentum.
Company Positive News
- Quarterly profit variation surged (+127%), highlighting strong earnings momentum.
- FII support increased, signaling global confidence.
- Dividend yield of 1.56% supports long-term investors.
Industry
- Industry PE at 39.9 is lower than TATACOMM’s PE, highlighting premium valuation.
- Telecom and digital infrastructure sector supported by rising demand for connectivity and cloud services.
- Sector consolidation favors established players like TATACOMM.
Conclusion
TATACOMM is in a bearish phase, trading below key moving averages with weak momentum signals. Entry near 1,580–1,600 ₹ offers limited risk, while resistance lies at 1,720–1,740 ₹. The stock needs stronger volume and a break above 1,730–1,733 ₹ to confirm reversal. Long-term fundamentals remain stable, but short-term traders should be cautious until momentum improves.
I can also prepare a comparative snapshot of TATACOMM vs TATACHEM to highlight which one offers stronger near-term trading potential.