⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TATASTEEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | TATASTEEL | Market Cap | 2,43,841 Cr. | Current Price | 195 ₹ | High / Low | 216 ₹ |
| Stock P/E | 15.5 | Book Value | 107 ₹ | Dividend Yield | 1.84 % | ROCE | 12.7 % |
| ROE | 10.9 % | Face Value | 1.00 ₹ | DMA 50 | 195 ₹ | DMA 200 | 177 ₹ |
| Chg in FII Hold | 0.20 % | Chg in DII Hold | 0.06 % | PAT Qtr | 4,086 Cr. | PAT Prev Qtr | 4,360 Cr. |
| RSI | 48.0 | MACD | -2.00 | Volume | 3,15,16,001 | Avg Vol 1Wk | 3,94,72,046 |
| Low price | 124 ₹ | High price | 216 ₹ | PEG Ratio | -0.65 | Debt to equity | 0.52 |
| 52w Index | 77.0 % | Qtr Profit Var | 2.45 % | EPS | 11.7 ₹ | Industry PE | 20.1 |
📊 Technical Analysis
- Chart Patterns: Stock has corrected from highs of ₹216, currently near ₹195 with support at ₹190–₹195 and resistance around ₹205–₹210.
- Moving Averages: Price (₹195) at 50 DMA (₹195) and above 200 DMA (₹177), showing medium-term strength but short-term indecision.
- RSI: 48.0 — neutral, suggesting balanced momentum.
- MACD: -2.00 — slightly bearish, momentum weak.
- Bollinger Bands: Price near mid-band, confirming consolidation phase.
- Volume Trends: Current volume (3.15 Cr) below 1-week average (3.94 Cr), showing reduced participation.
📈 Momentum & Signals
- Short-term Momentum: Neutral to weak, with sideways consolidation.
- Entry Zone: ₹190–₹195 (support region).
- Exit Zone: ₹205–₹210 (resistance region).
- Trend Status: Consolidating with mild bearish bias.
✅ Positive
- EPS at ₹11.7, showing profitability.
- Dividend yield at 1.84%, attractive for income investors.
- FII holdings increased (+0.20%) and DII holdings increased (+0.06%).
- Price trading above 200 DMA, showing medium-term strength.
⚠️ Limitation
- PEG ratio negative (-0.65), showing poor earnings growth outlook.
- Debt-to-equity ratio at 0.52, indicating moderate leverage.
- Price at 50 DMA but weak MACD, confirming indecision.
- ROCE (12.7%) and ROE (10.9%) moderate compared to peers.
📉 Company Negative News
- Sequential PAT decline (₹4,086 Cr vs ₹4,360 Cr).
- Quarterly profit variation (+2.45%) shows limited growth momentum.
- Weak 52-week performance (77.0%), underperforming peers despite recovery.
📈 Company Positive News
- EPS and dividend yield provide steady investor returns.
- Stock trading above 200 DMA, showing medium-term resilience.
- Institutional participation increased (FII and DII).
🏭 Industry
- Steel sector PE at 20.1, showing moderate valuations compared to Tata Steel’s lower P/E (15.5).
- Industry supported by infrastructure demand and global commodity cycles.
🔎 Conclusion
- TATASTEEL is consolidating, trading at 50 DMA with neutral RSI and weak MACD.
- Entry near ₹190–₹195 support zone, exit around ₹205–₹210 resistance.
- Short-term traders can look for rebounds from support levels.
- Long-term investors may find value in lower P/E compared to industry, but should be cautious of weak earnings growth and moderate leverage.