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TATACOMM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | TATACOMM | Market Cap | 42,745 Cr. | Current Price | 1,498 ₹ | High / Low | 2,004 ₹ |
| Stock P/E | 60.5 | Book Value | 355 ₹ | Dividend Yield | 1.67 % | ROCE | 6.39 % |
| ROE | 5.93 % | Face Value | 10.0 ₹ | DMA 50 | 1,596 ₹ | DMA 200 | 1,687 ₹ |
| Chg in FII Hold | 0.85 % | Chg in DII Hold | -0.54 % | PAT Qtr | 306 Cr. | PAT Prev Qtr | 155 Cr. |
| RSI | 44.6 | MACD | -53.5 | Volume | 2,08,226 | Avg Vol 1Wk | 3,25,683 |
| Low price | 1,377 ₹ | High price | 2,004 ₹ | PEG Ratio | -3.11 | Debt to equity | 0.55 |
| 52w Index | 19.3 % | Qtr Profit Var | 127 % | EPS | 46.4 ₹ | Industry PE | 37.3 |
📊 Technical Analysis
- Chart Patterns: Stock has corrected from highs of ₹2,004, currently stabilizing near ₹1,498 with support at ₹1,470–₹1,500 and resistance around ₹1,590–₹1,600.
- Moving Averages: Price (₹1,498) below both 50 DMA (₹1,596) and 200 DMA (₹1,687), confirming bearish trend.
- RSI: 44.6 — neutral to slightly oversold, suggesting limited downside.
- MACD: -53.5 — bearish crossover, momentum negative.
- Bollinger Bands: Price near lower band, oversold condition may trigger short-term bounce.
- Volume Trends: Current volume (2.08 Lakh) below 1-week average (3.25 Lakh), showing reduced participation.
📈 Momentum & Signals
- Short-term Momentum: Weak, with bearish bias but oversold signals hint at possible rebound.
- Entry Zone: ₹1,470–₹1,500 (support region).
- Exit Zone: ₹1,590–₹1,600 (resistance region).
- Trend Status: Consolidating with bearish bias.
✅ Positive
- Quarterly PAT growth (₹306 Cr vs ₹155 Cr, +127%).
- EPS at ₹46.4, showing profitability despite correction.
- Dividend yield at 1.67%, attractive for income investors.
- FII holdings increased (+0.85%).
⚠️ Limitation
- Stock P/E (60.5) significantly above industry average (37.3), indicating expensive valuation.
- PEG ratio negative (-3.11), showing poor earnings growth outlook.
- Price below both 50 DMA and 200 DMA, confirming bearish trend.
- ROCE (6.39%) and ROE (5.93%) relatively weak.
📉 Company Negative News
- Stock has lost significant value from 52-week highs (₹2,004 to ₹1,498).
- DII holdings decreased (-0.54%).
- Weak efficiency metrics compared to peers.
📈 Company Positive News
- Strong quarterly profit growth (+127%).
- Dividend yield of 1.67% provides steady returns.
- FII participation increased, showing institutional confidence.
📡 Industry
- Telecom & digital services sector PE at 37.3, showing moderate valuations compared to Tata Communications’ premium pricing.
- Industry supported by rising demand for data services, cloud, and digital infrastructure.
🔎 Conclusion
- TATACOMM is in a bearish consolidation phase, trading below key moving averages.
- Oversold RSI and Bollinger Band signals suggest potential rebound near ₹1,470–₹1,500.
- Short-term traders can accumulate near support and exit around ₹1,590–₹1,600.
- Long-term investors should be cautious due to high valuations and weak efficiency metrics despite strong profit growth.