TATAPOWER - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | TATAPOWER | Market Cap | 1,13,134 Cr. | Current Price | 354 ₹ | High / Low | 417 ₹ |
| Stock P/E | 48.4 | Book Value | 59.0 ₹ | Dividend Yield | 0.63 % | ROCE | 14.8 % |
| ROE | 18.1 % | Face Value | 1.00 ₹ | DMA 50 | 373 ₹ | DMA 200 | 385 ₹ |
| Chg in FII Hold | -0.19 % | Chg in DII Hold | 0.86 % | PAT Qtr | 431 Cr. | PAT Prev Qtr | 520 Cr. |
| RSI | 40.9 | MACD | -6.23 | Volume | 44,44,243 | Avg Vol 1Wk | 54,79,061 |
| Low price | 326 ₹ | High price | 417 ₹ | PEG Ratio | 1.87 | Debt to equity | 1.24 |
| 52w Index | 31.0 % | Qtr Profit Var | -57.3 % | EPS | 7.32 ₹ | Industry PE | 22.1 |
📈 Chart Patterns & Trend: TATAPOWER is trading at 354 ₹, below both the 50 DMA (373 ₹) and 200 DMA (385 ₹), indicating short-term and medium-term weakness. RSI at 40.9 suggests the stock is nearing oversold territory. MACD at -6.23 confirms bearish momentum. Bollinger Bands place price near the lower-middle range, signaling consolidation with mild bearish undertone.
📊 Volume Trends: Current volume (44.4 lakh) is lower than the 1-week average (54.8 lakh), reflecting reduced participation and cautious sentiment among traders.
🎯 Momentum Signals:
- Price below both 50 DMA and 200 DMA confirms bearish bias.
- RSI near oversold zone may trigger a technical bounce.
- MACD negative, reinforcing weak momentum.
💡 Entry Zone: 340–350 ₹ (near support).
🚪 Exit Zone: 380–390 ₹ (near 200 DMA resistance).
🔎 Overall Trend: The stock is consolidating near support levels with mild bearish undertone. Sustained recovery requires crossing 373–385 ₹ with volume support.
Positive
- ROCE of 14.8% and ROE of 18.1% indicate decent efficiency.
- DII holdings increased (+0.86%), showing domestic institutional confidence.
- Dividend yield of 0.63% provides steady income for investors.
- EPS of 7.32 ₹ supports long-term valuation.
Limitation
- Stock trading below both 50 DMA and 200 DMA, confirming weakness.
- High P/E of 48.4 compared to industry PE of 22.1, suggesting premium valuation.
- Debt-to-equity ratio of 1.24 highlights leverage risk.
- Volume trends show declining investor participation.
Company Negative News
- Quarterly PAT declined from 520 Cr. to 431 Cr., showing earnings pressure.
- FII holdings decreased (-0.19%), reflecting reduced foreign investor confidence.
- Quarterly profit variation dropped sharply (-57.3%).
Company Positive News
- DII support increased, signaling domestic confidence.
- Strong fundamentals with stable dividend payout.
- EPS remains consistent despite earnings pressure.
Industry
- Industry PE at 22.1 is much lower than TATAPOWER’s PE, highlighting premium valuation.
- Power and energy sector supported by renewable energy initiatives and infrastructure growth.
- Sector consolidation favors established players like TATAPOWER.
Conclusion
TATAPOWER is consolidating near support levels with weak momentum signals. Entry near 340–350 ₹ offers limited risk, while resistance lies at 380–390 ₹. The stock needs stronger volume and a break above 373–385 ₹ to confirm bullish reversal. Long-term fundamentals remain stable, but short-term traders should be cautious until momentum improves.
I can also prepare a comparative snapshot of TATAPOWER vs TMPV to highlight which one offers stronger near-term trading potential.