TATAPOWER - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.1

Technical Analysis Report for Tata Power Ltd (TATAPOWER)

• Trend Status: Trending upward with moderate momentum
• Moving Averages: Price above both 50 DMA (₹394) and 200 DMA (₹392) — bullish alignment
• RSI: 60.2 — bullish zone, nearing overbought territory
• MACD: Positive at 4.12 — bullish crossover, confirms upward momentum
• Bollinger Bands: Price near upper band — breakout continuation possible
• Volume: Slightly below weekly average — momentum slowing, needs confirmation

Entry & Exit Zones

• Support Levels: ₹394 (DMA 50), ₹385 (trendline), ₹370 (swing low)
• Resistance Levels: ₹420 (minor resistance), ₹440 (gap zone), ₹455 (52-week high)
• Optimal Entry: ₹395–₹405 (on pullback or consolidation)
• Optimal Exit: ₹440–₹455 (if momentum sustains)

Positive

• MACD and RSI confirm bullish momentum
• Price above key moving averages — trend strength intact
• EPS of ₹9.12 — solid earnings base
• FII holding increased by 0.14%, DII by 0.39% — institutional confidence

Limitation

• Volume below average — weak participation
• RSI nearing overbought — potential short-term pullback
• Debt-to-equity ratio of 1.09 — moderately leveraged
• High P/E of 44.4 vs industry average of 25.1 — premium valuation

Company Negative News

• Quarterly profit variation of -29.4% — sequential earnings decline

Company Positive News

• PAT improved from ₹409 Cr. to ₹520 Cr. — strong sequential recovery

Industry

• Power and utilities — stable demand with long-term growth from renewables and infrastructure
• Industry P/E of 25.1 — TATAPOWER trades at a premium

Conclusion

Tata Power Ltd is currently trending upward with bullish technical indicators and improving earnings. While volume is slightly weak and valuation is stretched, MACD and price action above key moving averages support further upside. Traders may consider entries near ₹395 with exits around ₹455, monitoring RSI and volume for sustained momentum.