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TATAPOWER - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 19 Mar 26, 09:02 pm

Technical Rating: 3.8

Stock Code TATAPOWER Market Cap 1,27,734 Cr. Current Price 400 ₹ High / Low 417 ₹
Stock P/E 106 Book Value 59.0 ₹ Dividend Yield 0.56 % ROCE 14.8 %
ROE 18.1 % Face Value 1.00 ₹ DMA 50 379 ₹ DMA 200 383 ₹
Chg in FII Hold -0.19 % Chg in DII Hold 0.86 % PAT Qtr -160 Cr. PAT Prev Qtr 431 Cr.
RSI 62.9 MACD 6.71 Volume 76,41,291 Avg Vol 1Wk 1,33,55,468
Low price 332 ₹ High price 417 ₹ PEG Ratio 6.95 Debt to equity 1.24
52w Index 79.8 % Qtr Profit Var -116 % EPS 3.76 ₹ Industry PE 24.6

📊 Technical Analysis

  • Chart Patterns: Stock has moved close to its 52-week high of ₹417, currently near ₹400 with support at ₹380–₹390 and resistance around ₹410–₹417.
  • Moving Averages: Price (₹400) above both 50 DMA (₹379) and 200 DMA (₹383), showing bullish strength.
  • RSI: 62.9 — moderately strong, nearing overbought zone.
  • MACD: 6.71 — bullish crossover, momentum positive.
  • Bollinger Bands: Price near upper band, suggesting strong momentum but risk of short-term pullback.
  • Volume Trends: Current volume (76.4 Lakh) below 1-week average (133.5 Lakh), showing reduced participation.

📈 Momentum & Signals

  • Short-term Momentum: Strong, with bullish bias but nearing overbought levels.
  • Entry Zone: ₹380–₹400 (support region).
  • Exit Zone: ₹410–₹417 (resistance region).
  • Trend Status: Trending upward with caution near highs.

✅ Positive

  • Price trading above both 50 DMA and 200 DMA, showing bullish strength.
  • Strong ROE (18.1%) and ROCE (14.8%).
  • DII holdings increased (+0.86%).
  • Dividend yield at 0.56%, providing steady returns.

⚠️ Limitation

  • Extremely high P/E ratio (106) compared to industry average (24.6), indicating expensive valuation.
  • PEG ratio at 6.95, showing stretched valuation relative to growth.
  • Debt-to-equity ratio at 1.24, relatively high leverage.
  • Volume below weekly average, showing reduced participation.

📉 Company Negative News

  • Sequential PAT decline (₹-160 Cr vs ₹431 Cr).
  • Quarterly profit variation (-116%) highlights sharp deterioration.
  • FII holdings decreased (-0.19%).

📈 Company Positive News

  • Stock trading near 52-week highs, showing strong momentum.
  • DII participation increased, showing domestic institutional confidence.
  • Dividend yield provides consistent returns.

⚡ Industry

  • Power & utilities sector PE at 24.6, showing moderate valuations compared to Tata Power’s premium pricing.
  • Industry supported by renewable energy expansion and infrastructure growth.

🔎 Conclusion

  • TATAPOWER is trending upward, trading above key moving averages.
  • RSI and Bollinger Band signals suggest strong momentum but caution near overbought levels.
  • Short-term traders can accumulate near ₹380–₹400 and exit around ₹410–₹417.
  • Long-term investors should be cautious due to high valuations and recent profit decline despite strong sectoral outlook.

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