TATACOMM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | TATACOMM | Market Cap | 45,044 Cr. | Current Price | 1,580 ₹ | High / Low | 2,004 ₹ |
| Stock P/E | 58.2 | Book Value | 371 ₹ | Dividend Yield | 1.58 % | ROCE | 8.69 % |
| ROE | 7.36 % | Face Value | 10.0 ₹ | DMA 50 | 1,535 ₹ | DMA 200 | 1,640 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.65 % | PAT Qtr | 172 Cr. | PAT Prev Qtr | 306 Cr. |
| RSI | 58.0 | MACD | 27.9 | Volume | 2,87,583 | Avg Vol 1Wk | 6,03,389 |
| Low price | 1,322 ₹ | High price | 2,004 ₹ | PEG Ratio | -20.0 | Debt to equity | 0.52 |
| 52w Index | 37.9 % | Qtr Profit Var | 57.4 % | EPS | 27.9 ₹ | Industry PE | 41.0 |
📈 Chart Patterns & Trend: TATACOMM is trading above its 50 DMA (₹1,535) but below its 200 DMA (₹1,640), with current price at ₹1,580. The stock is consolidating after a rebound from its low (₹1,322). Trend bias is neutral-to-bullish in the short term, but medium-term weakness persists below the 200 DMA.
📊 Indicators: RSI at 58.0 indicates moderate momentum. MACD positive at 27.9 confirms bullish crossover. Bollinger Bands show price near mid-to-upper band, suggesting controlled upward movement with resistance overhead.
🔎 Volume: Current volume (2.87 Lakh) is below average weekly volume (6.03 Lakh), showing reduced participation and lack of conviction at current levels.
🎯 Entry Zone: ₹1,550–₹1,565 (near 50 DMA support)
🚪 Exit Zone: ₹1,620–₹1,640 (resistance near 200 DMA)
Positive
- EPS of ₹27.9 supports earnings visibility.
- DII holdings increased by 0.65%, showing domestic confidence.
- Dividend yield of 1.58% adds investor appeal.
- Stock trading above 50 DMA confirms short-term strength.
Limitation
- High P/E of 58.2 compared to industry average (41.0).
- Weak ROCE (8.69%) and ROE (7.36%) reflect modest efficiency.
- PEG ratio of -20.0 indicates poor valuation alignment with growth.
- Sequential PAT decline (₹306 Cr. → ₹172 Cr.) raises concerns.
- FII holdings decreased by 0.02%, showing reduced foreign interest.
Company Negative News
- Quarterly profit decline highlights earnings volatility.
- Premium valuation compared to peers may limit upside.
Company Positive News
- Dividend yield and EPS provide investor support.
- Domestic institutional investors increased stake, reflecting confidence.
Industry
- Industry PE at 41.0 is lower than TATACOMM’s 58.2, highlighting premium valuation.
- Telecom & digital services sector outlook remains positive with demand for connectivity and enterprise solutions.
Conclusion
TATACOMM is consolidating with short-term bullish signals from MACD and RSI, but medium-term weakness persists below the 200 DMA. Entry near ₹1,550–₹1,565 offers tactical opportunity, with exit around ₹1,620–₹1,640. Fundamentals remain mixed, with dividend support but weak efficiency and profit decline requiring disciplined risk management.
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