TATAINVEST - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | TATAINVEST | Market Cap | 30,617 Cr. | Current Price | 605 ₹ | High / Low | 1,185 ₹ |
| Stock P/E | 91.9 | Book Value | 622 ₹ | Dividend Yield | 0.45 % | ROCE | 1.09 % |
| ROE | 0.93 % | Face Value | 1.00 ₹ | DMA 50 | 688 ₹ | DMA 200 | 707 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.00 % | PAT Qtr | 37.0 Cr. | PAT Prev Qtr | 122 Cr. |
| RSI | 28.3 | MACD | -26.6 | Volume | 3,05,739 | Avg Vol 1Wk | 5,26,390 |
| Low price | 515 ₹ | High price | 1,185 ₹ | PEG Ratio | 7.69 | Debt to equity | 0.00 |
| 52w Index | 13.4 % | Qtr Profit Var | 7.72 % | EPS | 6.59 ₹ | Industry PE | 22.5 |
📈 Chart Patterns & Trend: TATAINVEST is trading at 605 ₹, well below both the 50 DMA (688 ₹) and 200 DMA (707 ₹), indicating strong bearish bias. RSI at 28.3 suggests the stock is oversold and may see a technical bounce. MACD at -26.6 confirms heavy bearish momentum. Bollinger Bands place price near the lower band, signaling weakness but possible short-term support.
📊 Volume Trends: Current volume (3.05 lakh) is lower than the 1-week average (5.26 lakh), reflecting weak participation and declining investor interest.
🎯 Momentum Signals:
- Price below both 50 DMA and 200 DMA confirms bearish trend.
- RSI oversold, indicating potential for short-term rebound.
- MACD negative, reinforcing downward momentum.
💡 Entry Zone: 590–610 ₹ (near recent support).
🚪 Exit Zone: 680–700 ₹ (near 200 DMA resistance).
🔎 Overall Trend: The stock is reversing from highs and currently in a bearish phase. Sustained recovery requires crossing 688–707 ₹ with volume support.
Positive
- Dividend yield of 0.45% provides some income support.
- Debt-to-equity ratio of 0.00 reflects strong financial stability.
- Book value of 622 ₹ is close to current price, offering valuation cushion.
Limitation
- Stock trading well below both 50 DMA and 200 DMA, confirming weakness.
- Extremely high P/E of 91.9 compared to industry PE of 22.5, suggesting severe overvaluation.
- ROCE (1.09%) and ROE (0.93%) are very weak, showing poor efficiency.
- PEG ratio of 7.69 highlights unsustainable valuation relative to growth.
Company Negative News
- Quarterly PAT declined sharply from 122 Cr. to 37 Cr.
- FII holdings decreased (-0.15%), reflecting reduced foreign investor confidence.
- Stock price corrected from highs of 1,185 ₹ to 605 ₹.
Company Positive News
- Quarterly profit variation shows slight improvement (+7.72%).
- Strong fundamentals with zero debt.
- Dividend payout continues, supporting long-term investors.
Industry
- Industry PE at 22.5 is far lower than TATAINVEST’s PE, highlighting extreme premium valuation.
- Investment holding companies are sensitive to market cycles and valuations of underlying assets.
- Sector consolidation favors established players but valuation risks remain high.
Conclusion
TATAINVEST is in a bearish phase, trading below key moving averages with weak momentum signals. Entry near 590–610 ₹ offers limited risk, while resistance lies at 680–700 ₹. The stock needs stronger volume and a break above 707 ₹ to confirm reversal. Long-term fundamentals remain challenged due to high valuation and weak efficiency metrics, so short-term traders should be cautious until momentum improves.
I can also prepare a comparative snapshot of TATAINVEST vs TATAELXSI to highlight which one offers stronger near-term trading potential.