TATAELXSI - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.6

Technical Analysis Report for Tata Elxsi Ltd (TATAELXSI)

• Trend Status: Consolidating near key support levels
• Moving Averages: Price below both 50 DMA (₹5,548) and 200 DMA (₹5,958) — bearish alignment
• RSI: 48.2 — neutral zone, no strong directional bias
• MACD: Slightly positive at 3.36 — mild bullish crossover, early reversal signal
• Bollinger Bands: Price near mid-band — range-bound movement
• Volume: Below weekly average — weak participation, needs confirmation

Entry & Exit Zones

• Support Levels: ₹5,300 (minor support), ₹5,100 (trendline), ₹4,601 (52-week low)
• Resistance Levels: ₹5,548 (DMA 50), ₹5,958 (DMA 200), ₹6,200 (gap zone)
• Optimal Entry: ₹5,300–₹5,400 (on confirmation of support)
• Optimal Exit: ₹5,950–₹6,200 (if reversal sustains)

Positive

• MACD turning positive — early sign of bullish reversal
• Strong ROCE (36.3%) and ROE (29.3%) — excellent capital efficiency
• EPS of ₹108 — robust earnings base
• DII holding increased by 0.58% — domestic institutional support

Limitation

• Price below key moving averages — trend under pressure
• Volume below average — weak momentum confirmation
• PEG ratio of 4.00 — expensive on growth-adjusted basis
• High P/E of 50.7 vs industry average of 29.4 — premium valuation

Company Negative News

• FII holding declined by 0.21% — slight foreign investor pullback
• Quarterly profit variation of -32.5% — sequential earnings decline

Company Positive News

• PAT improved from ₹144 Cr. to ₹155 Cr. — sequential recovery
• Dividend yield of 1.38% — attractive for long-term investors

Industry

• Engineering R&D and design services — high-growth niche within IT sector
• Industry P/E of 29.4 — TATAELXSI trades at a significant premium

Conclusion

Tata Elxsi Ltd is currently consolidating near support levels with early signs of a potential reversal. While MACD and fundamentals are encouraging, weak volume and premium valuation suggest caution. Traders may consider entries near ₹5,300 with exits around ₹6,200, watching for RSI strength and volume confirmation to validate the trend shift.