TATAELXSI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | TATAELXSI | Market Cap | 33,786 Cr. | Current Price | 5,421 ₹ | High / Low | 6,735 ₹ |
| Stock P/E | 53.6 | Book Value | 434 ₹ | Dividend Yield | 1.38 % | ROCE | 36.3 % |
| ROE | 29.3 % | Face Value | 10.0 ₹ | DMA 50 | 5,387 ₹ | DMA 200 | 5,664 ₹ |
| Chg in FII Hold | -3.97 % | Chg in DII Hold | 1.91 % | PAT Qtr | 159 Cr. | PAT Prev Qtr | 155 Cr. |
| RSI | 50.5 | MACD | 8.16 | Volume | 3,48,596 | Avg Vol 1Wk | 2,16,816 |
| Low price | 4,601 ₹ | High price | 6,735 ₹ | PEG Ratio | 4.23 | Debt to equity | 0.06 |
| 52w Index | 38.4 % | Qtr Profit Var | -20.0 % | EPS | 93.2 ₹ | Industry PE | 23.9 |
📈 Chart Patterns & Trend: TATAELXSI is trading at 5,421 ₹, slightly above the 50 DMA (5,387 ₹) but below the 200 DMA (5,664 ₹), indicating short-term strength with medium-term consolidation. RSI at 50.5 suggests neutral momentum. MACD at 8.16 shows bullish crossover, signaling potential upward bias. Bollinger Bands place price near the middle range, hinting at sideways consolidation with mild bullish undertone.
📊 Volume Trends: Current volume (3.48 lakh) is higher than the 1-week average (2.16 lakh), reflecting strong participation and renewed investor interest.
🎯 Momentum Signals:
- Price above 50 DMA but below 200 DMA indicates consolidation with bullish tilt.
- RSI neutral, suggesting sideways movement.
- MACD positive, reinforcing bullish momentum.
💡 Entry Zone: 5,350–5,400 ₹ (near 50 DMA support).
🚪 Exit Zone: 5,650–5,700 ₹ (near 200 DMA resistance).
🔎 Overall Trend: The stock is consolidating between support and resistance levels. Sustained breakout above 5,664 ₹ (200 DMA) could trigger a fresh rally toward 6,000+ ₹.
Positive
- Strong ROCE of 36.3% and ROE of 29.3% indicate excellent efficiency.
- EPS of 93.2 ₹ supports robust earnings base.
- DII holdings increased (+1.91%), showing domestic institutional confidence.
- Dividend yield of 1.38% provides steady income for investors.
Limitation
- Stock trading below 200 DMA, showing medium-term weakness.
- High P/E of 53.6 compared to industry PE of 23.9, suggesting premium valuation.
- Quarterly profit variation declined (-20.0%), showing earnings pressure.
- PEG ratio of 4.23 highlights poor growth-to-valuation balance.
Company Negative News
- FII holdings decreased (-3.97%), reflecting reduced foreign investor confidence.
- Stock price corrected from highs of 6,735 ₹ to 5,421 ₹.
Company Positive News
- Quarterly PAT improved slightly (159 Cr. vs 155 Cr.).
- DII support increased, signaling domestic confidence.
- Strong fundamentals with high ROCE and ROE.
Industry
- Industry PE at 23.9 is much lower than TATAELXSI’s PE, highlighting premium valuation.
- IT and design services sector supported by global demand for digital engineering and product design.
- Sector consolidation favors established players like TATAELXSI.
Conclusion
TATAELXSI is consolidating near support levels with bullish momentum signals. Entry near 5,350–5,400 ₹ offers favorable risk-reward, while resistance lies at 5,650–5,700 ₹. The stock needs stronger volume and a break above 5,664 ₹ to confirm bullish reversal. Long-term fundamentals remain strong, but short-term traders should be cautious until momentum improves.
I can also prepare a comparative snapshot of TATAELXSI vs TCS to highlight which one offers stronger near-term trading potential.