TATACONSUM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | TATACONSUM | Market Cap | 1,07,593 Cr. | Current Price | 1,087 ₹ | High / Low | 1,221 ₹ |
| Stock P/E | 70.7 | Book Value | 174 ₹ | Dividend Yield | 0.76 % | ROCE | 10.0 % |
| ROE | 7.84 % | Face Value | 1.00 ₹ | DMA 50 | 1,163 ₹ | DMA 200 | 1,126 ₹ |
| Chg in FII Hold | -0.88 % | Chg in DII Hold | 1.26 % | PAT Qtr | 307 Cr. | PAT Prev Qtr | 285 Cr. |
| RSI | 36.1 | MACD | -14.9 | Volume | 12,05,263 | Avg Vol 1Wk | 30,88,529 |
| Low price | 930 ₹ | High price | 1,221 ₹ | PEG Ratio | 7.14 | Debt to equity | 0.05 |
| 52w Index | 54.1 % | Qtr Profit Var | -46.1 % | EPS | 16.1 ₹ | Industry PE | 13.6 |
📈 Chart Patterns & Trend: TATACONSUM is trading at 1,087 ₹, below both the 50 DMA (1,163 ₹) and 200 DMA (1,126 ₹), indicating short-term weakness. RSI at 36.1 suggests the stock is approaching oversold territory. MACD at -14.9 confirms bearish momentum. Bollinger Bands place price near the lower band, signaling weakness but potential short-term support.
📊 Volume Trends: Current volume (12 lakh) is significantly lower than the 1-week average (30.9 lakh), reflecting weak participation and declining investor interest.
🎯 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: 1,050–1,070 ₹ (near recent support).
🚪 Exit Zone: 1,160–1,180 ₹ (near 50 DMA resistance).
🔎 Overall Trend: The stock is reversing from highs and currently in a bearish phase. Sustained recovery requires crossing 1,163–1,126 ₹ with volume support.
Positive
- DII holdings increased (+1.26%), showing domestic institutional confidence.
- EPS of 16.1 ₹ supports long-term valuation.
- Dividend yield of 0.76% provides steady income for investors.
- Low debt-to-equity ratio (0.05) reflects financial stability.
Limitation
- Stock trading below both 50 DMA and 200 DMA, confirming weakness.
- High P/E of 70.7 compared to industry PE of 13.6, suggesting overvaluation.
- ROCE (10.0%) and ROE (7.84%) are relatively weak, showing modest efficiency.
- PEG ratio of 7.14 highlights poor growth-to-valuation balance.
Company Negative News
- Quarterly profit variation declined (-46.1%).
- FII holdings decreased (-0.88%), reflecting reduced foreign investor confidence.
- Stock price corrected from highs of 1,221 ₹ to 1,087 ₹.
Company Positive News
- Quarterly PAT improved slightly (307 Cr. vs 285 Cr.).
- DII support increased, signaling domestic confidence.
- Strong fundamentals with low leverage and stable dividend payout.
Industry
- Industry PE at 13.6 is far lower than TATACONSUM’s PE, highlighting premium valuation.
- Consumer goods sector supported by steady demand in beverages and packaged foods.
- Sector consolidation favors established players like TATACONSUM.
Conclusion
TATACONSUM is in a bearish phase, trading below key moving averages with weak momentum signals. Entry near 1,050–1,070 ₹ offers limited risk, while resistance lies at 1,160–1,180 ₹. The stock needs stronger volume and a break above 1,163–1,126 ₹ to confirm reversal. Long-term fundamentals remain stable, but short-term traders should be cautious until momentum improves.
Would you like me to also prepare a comparative snapshot of TATACONSUM vs TCS so you can see which one offers stronger near-term trading potential?