TATAINVEST - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | TATAINVEST | Market Cap | 33,793 Cr. | Current Price | 668 ₹ | High / Low | 1,185 ₹ |
| Stock P/E | 96.5 | Book Value | 570 ₹ | Dividend Yield | 0.51 % | ROCE | 1.29 % |
| ROE | 1.17 % | Face Value | 1.00 ₹ | DMA 50 | 674 ₹ | DMA 200 | 683 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.01 % | PAT Qtr | 52.1 Cr. | PAT Prev Qtr | 37.0 Cr. |
| RSI | 44.8 | MACD | -3.19 | Volume | 2,50,808 | Avg Vol 1Wk | 3,65,507 |
| Low price | 539 ₹ | High price | 1,185 ₹ | PEG Ratio | 7.27 | Debt to equity | 0.00 |
| 52w Index | 20.0 % | Qtr Profit Var | 48.0 % | EPS | 6.92 ₹ | Industry PE | 29.9 |
📊 Chart Analysis: TATAINVEST is trading at ₹668, slightly below both the 50 DMA (₹674) and 200 DMA (₹683), indicating short-term weakness. RSI at 44.8 suggests neutral-to-bearish momentum. MACD at -3.19 confirms mild negative momentum. Bollinger Bands show price near the lower band, reflecting selling pressure. Current volume (2.5L) is below the 1-week average (3.65L), showing reduced participation.
📈 Momentum Signals: Short-term momentum is bearish, with RSI showing limited strength and MACD confirming weakness. A rebound is possible only if support levels hold.
💹 Support & Resistance: Strong support lies near ₹539 (recent low). Immediate resistance is at ₹674 (50 DMA) and ₹683 (200 DMA). Optimal entry zone: ₹650–₹670. Exit zone: ₹680–₹700.
🔄 Trend Status: The stock is currently consolidating downward with potential reversal signs if support near ₹539 holds.
Positive
- ✅ EPS of ₹6.92 supports valuation strength.
- ✅ Dividend yield of 0.51% provides modest returns.
- ✅ Debt-to-equity ratio of 0.00 shows strong financial stability.
- ✅ PAT improved sequentially from ₹37 Cr. to ₹52.1 Cr. (+48%).
- ✅ FII holdings increased slightly by 0.08%, showing foreign investor interest.
Limitation
- ⚠️ Current price below both 50 DMA and 200 DMA, showing weak technical strength.
- ⚠️ Extremely high P/E of 96.5 compared to industry P/E of 29.9, suggesting severe overvaluation.
- ⚠️ PEG ratio of 7.27 indicates expensive growth expectations.
- ⚠️ ROCE at 1.29% and ROE at 1.17% are very weak efficiency metrics.
Company Negative News
- 📉 Stock trading at only 20% of its 52-week index, reflecting severe underperformance relative to highs.
- 📉 Volume significantly below average, showing weak investor participation.
Company Positive News
- 📈 Quarterly profit growth of 48% highlights operational improvement.
- 📈 Institutional investors (FII & DII) increased holdings slightly, signaling confidence.
Industry
- 📊 Investment holding sector trading at industry P/E of 29.9, far lower than TATAINVEST’s P/E of 96.5, highlighting valuation concerns.
- 📊 Sector supported by long-term equity investments and diversified holdings.
Conclusion
📌 TATAINVEST is consolidating downward, trading below key moving averages with bearish MACD and weak RSI. Entry around ₹650–₹670 with exit near ₹680–₹700 offers a cautious rebound opportunity. Fundamentals show profit growth and zero debt, but extreme overvaluation, weak efficiency metrics, and underperformance relative to the 52-week index are concerns. The stock remains risky and may stabilize only if support near ₹539 holds.
For broader context, you could explore a investment holding sector outlook or compare TATAINVEST with peers through a valuation comparison.