TATAINVEST - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.1

📊 Chart Patterns: TATAINVEST is trading below its 50 DMA (758 ₹) and slightly below its 200 DMA (721 ₹), showing weakness. Support lies near 700 ₹ and deeper support at 515 ₹, while resistance is around 758–770 ₹. The broader chart suggests consolidation with bearish undertone.

📈 Moving Averages: Current price (709 ₹) is below both 50 DMA and 200 DMA, signaling short-term bearish momentum.

📉 RSI: At 34.2, RSI is near oversold territory, suggesting weak momentum but potential for a short-term bounce.

📉 MACD: Negative (-19.9), confirming bearish crossover and downside pressure.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion in the short term.

📊 Volume Trends: Current volume (2,97,616) is slightly below average weekly volume (3,19,484), showing reduced participation and lack of strong buying interest.

🚦 Momentum Signals: Short-term momentum remains bearish. A bounce may occur near 700 ₹, but recovery requires crossing 758–770 ₹.

🎯 Entry Zone: 690–710 ₹ (near support).

🎯 Exit Zone: 758–770 ₹ (resistance at 50 DMA).

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

Positive

• Debt-free company (Debt-to-equity ratio: 0.00) ensures financial stability.
• EPS of 6.53 ₹ reflects consistent earnings despite volatility.
• Dividend yield of 0.38% provides shareholder returns.
• FII holdings increased slightly (+0.15%), showing foreign investor confidence.

Limitation

• Extremely high P/E (108) compared to industry average (30.2) suggests severe overvaluation.
• Weak ROCE (1.09%) and ROE (0.93%) indicate poor capital efficiency.
• PEG ratio of 9.08 shows expensive growth prospects.

Company Negative News

• PAT declined from 139 Cr. to 122 Cr. sequentially.
• Stock trading below both 50 & 200 DMA indicates weak technical strength.

Company Positive News

• Quarterly profit variation (+21.6%) indicates recovery momentum despite sequential decline.
• Debt-free balance sheet provides resilience.

Industry

• Industry P/E at 30.2 indicates moderate valuation compared to TATAINVEST’s elevated levels.
• Investment holding sector remains cyclical and dependent on performance of underlying portfolio companies.

Conclusion

⚖️ TATAINVEST is consolidating with bearish bias, trading below key moving averages. Short-term traders may consider entry near 690–710 ₹ with exit around 758–770 ₹. Long-term investors should be cautious due to extreme valuations and weak efficiency metrics, though debt-free status and modest institutional support provide resilience.