TATAPOWER - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart Patterns: TATAPOWER is trading below both its 50 DMA (387 ₹) and 200 DMA (390 ₹), showing weakness. Support lies near 370–375 ₹ and deeper support at 326 ₹, while resistance is around 387–390 ₹. The broader chart suggests consolidation with bearish undertone.

📈 Moving Averages: Current price (381 ₹) is below both 50 DMA and 200 DMA, signaling short-term bearish momentum.

📉 RSI: At 36.5, RSI is near oversold territory, suggesting weak momentum but potential for a short-term bounce.

📉 MACD: Negative (-3.62), 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 (36,81,632) is higher than average weekly volume (30,77,436), showing increased participation but not yet strong buying interest.

🚦 Momentum Signals: Short-term momentum remains bearish. A bounce may occur near 370 ₹, but recovery requires crossing 387–390 ₹.

🎯 Entry Zone: 370–380 ₹ (near support).

🎯 Exit Zone: 387–400 ₹ (resistance at 50 & 200 DMA).

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

Positive

• Strong ROE (18.1%) and ROCE (14.8%) indicate decent capital efficiency.
• Dividend yield of 0.60% provides shareholder returns.
• Institutional support with FII holdings up 0.14% and DII holdings up 0.39%.
• 52-week performance index at 60.4% highlights solid price appreciation.

Limitation

• High P/E (52.1) compared to industry average (21.9) suggests overvaluation.
• Debt-to-equity ratio of 1.24 indicates high leverage risk.
• PEG ratio of 2.01 shows expensive growth prospects.

Company Negative News

• PAT declined from 520 Cr. to 431 Cr. sequentially (-57.3% variation).
• Stock trading below both 50 & 200 DMA indicates weak technical strength.

Company Positive News

• EPS of 7.32 ₹ reflects consistent earnings despite quarterly slowdown.
• Institutional inflows (FII and DII) show confidence in long-term growth potential.

Industry

• Industry P/E at 21.9 indicates moderate valuation compared to TATAPOWER’s elevated levels.
• Power and energy sector remains supported by renewable energy demand and infrastructure expansion.

Conclusion

⚖️ TATAPOWER is consolidating with bearish bias, trading below key moving averages. Short-term traders may consider entry near 370–380 ₹ with exit around 387–400 ₹. Long-term investors should be cautious due to high valuations and leverage, though strong fundamentals, institutional support, and sectoral demand provide resilience.