TATASTEEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | TATASTEEL | Market Cap | 2,31,456 Cr. | Current Price | 185 ₹ | High / Low | 203 ₹ |
| Stock P/E | 14.8 | Book Value | 107 ₹ | Dividend Yield | 1.94 % | ROCE | 12.7 % |
| ROE | 10.9 % | Face Value | 1.00 ₹ | DMA 50 | 180 ₹ | DMA 200 | 168 ₹ |
| Chg in FII Hold | 0.20 % | Chg in DII Hold | 0.06 % | PAT Qtr | 4,360 Cr. | PAT Prev Qtr | 3,693 Cr. |
| RSI | 50.7 | MACD | 4.46 | Volume | 2,84,38,704 | Avg Vol 1Wk | 4,58,12,741 |
| Low price | 124 ₹ | High price | 203 ₹ | PEG Ratio | -0.62 | Debt to equity | 0.52 |
| 52w Index | 77.6 % | Qtr Profit Var | 21.8 % | EPS | 11.7 ₹ | Industry PE | 20.7 |
📈 Chart Patterns & Trend: TATASTEEL is trading at 185 ₹, above both the 50 DMA (180 ₹) and 200 DMA (168 ₹), indicating strong bullish momentum. RSI at 50.7 suggests neutral momentum, balanced between overbought and oversold. MACD at 4.46 shows bullish crossover, signaling upward bias. Bollinger Bands place price near the middle-upper range, hinting at continuation of the uptrend.
📊 Volume Trends: Current volume (2.84 crore) is lower than the 1-week average (4.58 crore), reflecting reduced participation but still healthy liquidity.
🎯 Momentum Signals:
- Price above both 50 DMA and 200 DMA confirms bullish bias.
- RSI neutral, suggesting room for further upside.
- MACD positive, reinforcing bullish momentum.
💡 Entry Zone: 178–185 ₹ (near 50 DMA support).
🚪 Exit Zone: 200–203 ₹ (near resistance and 52-week high).
🔎 Overall Trend: The stock is trending upward with strong medium-term momentum. Sustained breakout above 203 ₹ could trigger a fresh rally toward new highs.
Positive
- Price trading above both 50 DMA and 200 DMA, confirming strength.
- Quarterly PAT improved significantly (4,360 Cr. vs 3,693 Cr.).
- EPS of 11.7 ₹ supports valuation.
- Dividend yield of 1.94% provides steady income for investors.
- FII (+0.20%) and DII (+0.06%) holdings both increased, showing institutional confidence.
Limitation
- PEG ratio of -0.62 highlights poor growth-to-valuation balance.
- Debt-to-equity ratio of 0.52 indicates moderate leverage risk.
- Volume trends show declining participation compared to average.
Company Negative News
- Stock price corrected from highs of 203 ₹ to 185 ₹, showing resistance pressure.
- Debt levels remain relatively high compared to peers.
Company Positive News
- Quarterly profit variation improved (+21.8%), highlighting earnings momentum.
- Strong fundamentals with ROCE of 12.7% and ROE of 10.9%.
- Institutional support increased, signaling confidence.
Industry
- Industry PE at 20.7 is higher than TATASTEEL’s PE of 14.8, suggesting undervaluation relative to peers.
- Steel sector supported by infrastructure demand and global commodity cycles.
- Sector consolidation favors established players like TATASTEEL.
Conclusion
TATASTEEL is trending upward, supported by strong earnings growth and price action above key moving averages. Entry near 178–185 ₹ offers favorable risk-reward, while resistance lies at 200–203 ₹. The stock needs stronger volume and a breakout above 203 ₹ to confirm continuation of the rally. Long-term fundamentals remain strong, making it attractive for both short-term traders and long-term investors.
I can also prepare a comparative snapshot of TATASTEEL vs TATAPOWER to highlight which one offers stronger near-term trading potential.