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TATAELXSI - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 03 May 26, 11:25 am

Technical Rating: 3.6

Stock Code TATAELXSI Market Cap 25,728 Cr. Current Price 4,130 ₹ High / Low 6,735 ₹
Stock P/E 37.0 Book Value 488 ₹ Dividend Yield 1.82 % ROCE 29.9 %
ROE 23.6 % Face Value 10.0 ₹ DMA 50 4,476 ₹ DMA 200 5,138 ₹
Chg in FII Hold 2.52 % Chg in DII Hold -0.89 % PAT Qtr 220 Cr. PAT Prev Qtr 159 Cr.
RSI 39.0 MACD -64.4 Volume 2,80,691 Avg Vol 1Wk 3,98,239
Low price 3,966 ₹ High price 6,735 ₹ PEG Ratio -13.4 Debt to equity 0.05
52w Index 5.91 % Qtr Profit Var 27.8 % EPS 101 ₹ Industry PE 21.6

📈 Chart Patterns & Trend: TATAELXSI is trading below both 50 DMA (₹4,476) and 200 DMA (₹5,138), with current price at ₹4,130. The stock has declined sharply from its high (₹6,735) and is consolidating near support levels. Trend bias is bearish-to-neutral in the short term.

📊 Indicators: RSI at 39.0 indicates oversold territory, suggesting possible short-term bounce. MACD negative at -64.4 confirms strong bearish momentum. Bollinger Bands show price near lower band, reflecting selling pressure.

🔎 Volume: Current volume (2.8 Lakh) is below average weekly volume (3.9 Lakh), showing weak participation and lack of conviction.

🎯 Entry Zone: ₹4,050–₹4,100 (near support and oversold RSI)

🚪 Exit Zone: ₹4,450–₹4,500 (resistance near 50 DMA)


Positive

  • Strong ROCE (29.9%) and ROE (23.6%) highlight operational efficiency.
  • Quarterly PAT growth of 27.8% (₹220 Cr. vs ₹159 Cr.).
  • EPS of ₹101 supports earnings visibility.
  • Dividend yield of 1.82% adds investor appeal.
  • FII holdings increased by 2.52%, showing foreign investor confidence.

Limitation

  • Stock trading below both 50 DMA and 200 DMA reflects weak technical strength.
  • RSI and MACD show bearish momentum.
  • DII holdings decreased by 0.89%, showing reduced domestic confidence.
  • PEG ratio of -13.4 indicates poor valuation alignment with growth.
  • 52-week index gain of only 5.91% highlights limited upside.

Company Negative News

  • Weak technical momentum with RSI below 40 and negative MACD.
  • Decline from highs (₹6,735 → ₹4,130) shows sustained selling pressure.

Company Positive News

  • Strong quarterly profit growth supports earnings momentum.
  • Foreign institutional investors increased stake significantly.
  • Dividend yield provides investor support.

Industry

  • Industry PE at 21.6 is lower than TATAELXSI’s 37.0, highlighting premium valuation.
  • IT product design and engineering services sector outlook remains positive with global demand for digital transformation.

Conclusion

TATAELXSI is consolidating near support with bearish short-term signals from RSI and MACD. Entry near ₹4,050–₹4,100 offers tactical opportunity, with exit around ₹4,450–₹4,500. Fundamentals remain strong with efficiency and dividend support, but weak technicals and valuation concerns require cautious positioning.

Would you like me to also prepare a short-term intraday setup for TATAELXSI, with tighter entry/exit levels and stop-loss triggers, alongside this swing/investment view?

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