TATAPOWER - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | TATAPOWER | Market Cap | 1,42,049 Cr. | Current Price | 445 ₹ | High / Low | 465 ₹ |
| Stock P/E | 118 | Book Value | 59.0 ₹ | Dividend Yield | 0.51 % | ROCE | 14.8 % |
| ROE | 18.1 % | Face Value | 1.00 ₹ | DMA 50 | 405 ₹ | DMA 200 | 390 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.78 % | PAT Qtr | -160 Cr. | PAT Prev Qtr | 431 Cr. |
| RSI | 65.4 | MACD | 16.5 | Volume | 68,88,836 | Avg Vol 1Wk | 1,23,07,833 |
| Low price | 342 ₹ | High price | 465 ₹ | PEG Ratio | 7.73 | Debt to equity | 1.24 |
| 52w Index | 83.4 % | Qtr Profit Var | -116 % | EPS | 3.76 ₹ | Industry PE | 30.5 |
📈 Chart Patterns & Trend: TATAPOWER is trading above both 50 DMA (₹405) and 200 DMA (₹390), with current price at ₹445. The stock has rallied strongly from its low (₹342) but is consolidating near its recent high (₹465). Trend bias is bullish but showing signs of overextension.
📊 Indicators: RSI at 65.4 indicates moderately overbought conditions. MACD positive at 16.5 confirms bullish momentum. Bollinger Bands show price near upper band, suggesting stretched momentum and risk of short-term pullback.
🔎 Volume: Current volume (68.9 Lakh) is below average weekly volume (1.23 Cr.), showing reduced participation at higher levels and possible profit booking.
🎯 Entry Zone: ₹430–₹440 (near DMA support)
🚪 Exit Zone: ₹460–₹470 (resistance near recent highs)
Positive
- Strong ROE (18.1%) and ROCE (14.8%) highlight operational efficiency.
- DII holdings increased by 0.78%, showing domestic confidence.
- Stock trading above both 50 DMA and 200 DMA confirms bullish structure.
- 52-week index performance at 83.4% reflects strong relative strength.
Limitation
- Extremely high P/E of 118 compared to industry average (30.5).
- Sequential PAT decline from ₹431 Cr. to ₹-160 Cr. raises earnings concerns.
- PEG ratio of 7.73 indicates expensive valuation relative to growth.
- Debt-to-equity ratio of 1.24 highlights leverage risk.
- Volume below average suggests weakening momentum.
Company Negative News
- Recent quarterly loss (₹-160 Cr.) highlights earnings volatility.
- High debt levels remain a structural concern.
Company Positive News
- Domestic institutional investors increased stake, reflecting confidence.
- Strong long-term price performance with 52-week index at 83.4%.
Industry
- Industry PE at 30.5 is much lower than TATAPOWER’s 118, highlighting premium valuation.
- Power sector outlook remains positive with renewable energy expansion and infrastructure demand.
Conclusion
TATAPOWER is trending upward with bullish signals from MACD and moving averages, but RSI indicates overbought conditions and earnings volatility raises caution. Entry near ₹430–₹440 offers tactical opportunity, with exit around ₹460–₹470. Fundamentals show efficiency and sector strength, but high valuations and debt require disciplined risk management.
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