TATACONSUM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Chart Patterns: TATACONSUM is trading close to its 52-week high (1,203 ₹), showing strong upward momentum. Support lies near 1,154 ₹ (50 DMA) and 1,110 ₹ (200 DMA), while resistance is around 1,200–1,210 ₹. The broader chart suggests an uptrend with consolidation near highs.

📈 Moving Averages: Current price (1,182 ₹) is above both 50 DMA (1,154 ₹) and 200 DMA (1,110 ₹), signaling bullish momentum.

📉 RSI: At 54.5, RSI is neutral, suggesting balanced momentum with room for further upside.

📈 MACD: Positive (0.96), confirming bullish crossover and potential continuation of upward momentum.

📊 Bollinger Bands: Price is near the upper band, indicating strength but also potential resistance near 1,200 ₹.

📊 Volume Trends: Current volume (5,87,895) is lower than average weekly volume (11,09,712), showing reduced participation despite price strength.

🚦 Momentum Signals: Short-term momentum is mildly bullish. Sustained move above 1,200 ₹ could trigger breakout toward 1,220–1,250 ₹.

🎯 Entry Zone: 1,150–1,170 ₹ (near DMA support).

🎯 Exit Zone: 1,200–1,220 ₹ (resistance zone).

📌 Trend Status: The stock is trending upward with consolidation near highs.

Positive

• Strong 52-week performance index (93.5%) highlights robust price appreciation.
• Low debt-to-equity ratio (0.05) ensures financial stability.
• Institutional support with FII holdings up 0.10% and DII holdings up 0.18%.

Limitation

• High P/E (65.6) compared to industry average (15.8) suggests overvaluation.
• PEG ratio of 6.62 indicates expensive growth prospects.
• ROCE (10.0%) and ROE (7.84%) are modest compared to peers.

Company Negative News

• PAT declined sharply from 714 Cr. to 285 Cr. sequentially.
• Volume trends show reduced investor participation despite price strength.

Company Positive News

• Quarterly profit variation (+19.8%) indicates recovery momentum.
• EPS of 18.6 ₹ reflects consistent earnings power.
• Dividend yield of 0.70% provides steady shareholder returns.

Industry

• Industry P/E at 15.8 indicates moderate valuation compared to TATACONSUM’s elevated levels.
• Consumer goods sector remains supported by strong demand and brand positioning.

Conclusion

⚖️ TATACONSUM is trending upward with bullish signals from MACD and moving averages, but faces resistance near 1,200 ₹. Short-term traders may consider entry near 1,150–1,170 ₹ with exit around 1,200–1,220 ₹. Long-term investors should be cautious due to high valuations and modest efficiency metrics, though strong brand presence and institutional support provide resilience.