TATACOMM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

📊 Chart Patterns: TATACOMM is trading near its 50 DMA (1,817 ₹) and above its 200 DMA (1,740 ₹). Support lies near 1,740 ₹, while resistance is around 1,900–2,000 ₹. The broader chart suggests consolidation with mild weakness after failing to sustain above 1,900 ₹.

📈 Moving Averages: Current price (1,815 ₹) is aligned with the 50 DMA and above the 200 DMA, indicating neutral-to-bullish undertone but short-term indecision.

📉 RSI: At 43.3, RSI is neutral to weak, suggesting limited momentum and potential sideways movement.

📉 MACD: Negative (-13.0), confirming bearish crossover and short-term downside pressure.

📊 Bollinger Bands: Price is near the mid-band, indicating consolidation. A breakout above 1,850–1,900 ₹ could trigger momentum toward 2,000 ₹.

📊 Volume Trends: Current volume (1,29,358) is lower than average weekly volume (1,65,255), showing reduced participation and lack of strong buying interest.

🚦 Momentum Signals: Short-term momentum is weak. Sustained move above 1,850 ₹ is required for confirmation of bullish reversal.

🎯 Entry Zone: 1,740–1,770 ₹ (near 200 DMA support).

🎯 Exit Zone: 1,900–2,000 ₹ (resistance zone).

📌 Trend Status: The stock is consolidating with bearish undertone, awaiting breakout above resistance.

Positive

• EPS of 41.3 ₹ reflects consistent earnings power.
• DII holdings increased by 4.20%, showing strong domestic institutional support.
• Dividend yield of 1.40% provides steady shareholder returns.

Limitation

• High P/E (96.7) compared to industry average (51.2) suggests overvaluation.
• Weak ROCE (6.39%) and ROE (5.93%) indicate modest capital efficiency.
• Debt-to-equity ratio of 0.55 adds leverage risk.

Company Negative News

• FII holdings decreased by -3.56%, showing reduced foreign investor confidence.
• MACD remains negative, signaling short-term weakness.

Company Positive News

• PAT improved from 136 Cr. to 155 Cr. (+26.6% variation).
• DII inflows reflect confidence in long-term growth potential.

Industry

• Industry P/E at 51.2 indicates moderate valuation compared to TATACOMM’s elevated levels.
• Telecom and digital infrastructure sector remains supported by rising demand for connectivity and enterprise solutions.

Conclusion

⚖️ TATACOMM is consolidating with bearish undertone, trading near its 50 DMA and above 200 DMA. Short-term traders may consider entry near 1,740–1,770 ₹ with exit around 1,900–2,000 ₹. Long-term investors should be cautious due to high valuations and weak efficiency metrics, but dividend yield and domestic institutional support provide resilience.