TATAELXSI - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns: TATAELXSI is trading above its 50 DMA (5,249 ₹) but below its 200 DMA (5,737 ₹). Support lies near 5,250 ₹, while resistance is around 5,700–5,750 ₹. The broader chart suggests consolidation with bearish undertone after failing to sustain above 200 DMA.

📈 Moving Averages: Current price (5,412 ₹) is above 50 DMA but below 200 DMA, signaling short-term strength but medium-term weakness.

📉 RSI: At 41.4, RSI is weak, suggesting limited momentum and potential downside risk.

📉 MACD: Strongly negative (-86.8), confirming bearish crossover and downside pressure.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible short-term bounce.

📊 Volume Trends: Current volume (1,12,393) is higher than average weekly volume (94,312), showing increased participation but not yet strong buying interest.

🚦 Momentum Signals: Short-term momentum remains bearish. A bounce may occur near 5,250 ₹, but recovery requires crossing 5,700–5,750 ₹.

🎯 Entry Zone: 5,250–5,300 ₹ (near support).

🎯 Exit Zone: 5,700–5,750 ₹ (resistance at 200 DMA).

📌 Trend Status: The stock is consolidating with bearish bias, not yet reversing into an uptrend.

Positive

• Strong ROCE (36.3%) and ROE (29.3%) highlight excellent capital efficiency.
• Low debt-to-equity ratio (0.06) ensures financial stability.
• DII holdings increased by 0.58%, showing domestic institutional support.
• Dividend yield of 1.43% provides steady shareholder returns.

Limitation

• High P/E (50.3) compared to industry average (26.4) suggests overvaluation.
• PEG ratio of 3.97 indicates expensive growth prospects.
• Stock trading below 200 DMA indicates medium-term weakness.

Company Negative News

• Quarterly profit variation (-32.5%) shows slowing earnings momentum.
• FII holdings decreased by -0.21%, reflecting reduced foreign investor confidence.

Company Positive News

• PAT improved sequentially from 144 Cr. to 155 Cr.
• EPS of 108 ₹ reflects strong earnings power.

Industry

• Industry P/E at 26.4 indicates moderate valuation compared to TATAELXSI’s elevated levels.
• IT and design services sector remains supported by global demand for digital engineering and innovation.

Conclusion

⚖️ TATAELXSI is consolidating with bearish bias, trading above 50 DMA but below 200 DMA. Short-term traders may consider entry near 5,250–5,300 ₹ with exit around 5,700–5,750 ₹. Long-term investors should be cautious due to high valuations and slowing profit growth, though strong fundamentals, low debt, and sectoral demand provide resilience.