TATASTEEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | TATASTEEL | Market Cap | 2,63,852 Cr. | Current Price | 211 ₹ | High / Low | 218 ₹ |
| Stock P/E | 16.8 | Book Value | 107 ₹ | Dividend Yield | 1.70 % | ROCE | 12.7 % |
| ROE | 10.9 % | Face Value | 1.00 ₹ | DMA 50 | 202 ₹ | DMA 200 | 183 ₹ |
| Chg in FII Hold | 1.09 % | Chg in DII Hold | -0.31 % | PAT Qtr | 4,086 Cr. | PAT Prev Qtr | 4,360 Cr. |
| RSI | 57.7 | MACD | 4.22 | Volume | 2,63,26,581 | Avg Vol 1Wk | 3,33,56,266 |
| Low price | 139 ₹ | High price | 218 ₹ | PEG Ratio | -0.70 | Debt to equity | 0.52 |
| 52w Index | 91.3 % | Qtr Profit Var | 2.45 % | EPS | 11.7 ₹ | Industry PE | 22.9 |
📈 Chart Patterns & Trend: TATASTEEL is trading above both 50 DMA (₹202) and 200 DMA (₹183), with current price at ₹211. The stock has rallied strongly from its low (₹139) and is consolidating near its recent high (₹218). Trend bias remains bullish with momentum support.
📊 Indicators: RSI at 57.7 indicates neutral-to-positive momentum. MACD positive at 4.22 confirms bullish crossover. Bollinger Bands show price near upper band, suggesting momentum continuation but risk of short-term profit booking.
🔎 Volume: Current volume (2.63 Cr.) is below average weekly volume (3.33 Cr.), showing reduced participation at higher levels.
🎯 Entry Zone: ₹205–₹210 (near DMA support)
🚪 Exit Zone: ₹215–₹218 (resistance near recent highs)
Positive
- EPS of ₹11.7 supports earnings visibility.
- ROCE (12.7%) and ROE (10.9%) highlight moderate efficiency.
- FII holdings increased by 1.09%, showing foreign investor confidence.
- Stock trading above both 50 DMA and 200 DMA confirms bullish structure.
- Strong 52-week index performance at 91.3% reflects resilience.
Limitation
- PEG ratio of -0.70 indicates poor valuation alignment with growth.
- Debt-to-equity ratio of 0.52 highlights leverage risk.
- Quarterly PAT decline from ₹4,360 Cr. to ₹4,086 Cr. (-2.45%).
- DII holdings decreased by 0.31%, showing reduced domestic confidence.
- Volume below average suggests weakening momentum.
Company Negative News
- Sequential profit decline raises earnings concerns.
- Moderate efficiency ratios compared to industry peers.
Company Positive News
- Foreign institutional investors increased stake significantly.
- Strong long-term price performance with 52-week index at 91.3%.
Industry
- Industry PE at 22.9 is higher than TATASTEEL’s 16.8, suggesting undervaluation relative to peers.
- Steel sector outlook remains positive with infrastructure demand and global recovery.
Conclusion
TATASTEEL is trending upward with bullish signals from MACD and moving averages, but volume weakness and profit decline raise caution. Entry near ₹205–₹210 offers tactical opportunity, with exit around ₹215–₹218. Fundamentals remain stable with undervaluation relative to peers, but debt and earnings volatility require disciplined positioning.
Would you like me to also prepare a short-term intraday trade setup for TATASTEEL, with tighter entry/exit levels and stop-loss triggers, alongside this swing view?