TATASTEEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | TATASTEEL | Market Cap | 2,61,193 Cr. | Current Price | 209 ₹ | High / Low | 224 ₹ |
| Stock P/E | 15.5 | Book Value | 109 ₹ | Dividend Yield | 1.91 % | ROCE | 14.0 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 207 ₹ | DMA 200 | 187 ₹ |
| Chg in FII Hold | 1.09 % | Chg in DII Hold | -0.31 % | PAT Qtr | 4,757 Cr. | PAT Prev Qtr | 4,086 Cr. |
| RSI | 48.0 | MACD | 0.88 | Volume | 2,26,16,527 | Avg Vol 1Wk | 4,35,76,658 |
| Low price | 150 ₹ | High price | 224 ₹ | PEG Ratio | 4.06 | Debt to equity | 0.51 |
| 52w Index | 79.6 % | Qtr Profit Var | 33.8 % | EPS | 12.9 ₹ | Industry PE | 19.0 |
📊 Chart Analysis: TATASTEEL is trading at ₹209, above both the 50 DMA (₹207) and 200 DMA (₹187), indicating short-term bullish bias. RSI at 48.0 suggests neutral momentum. MACD at 0.88 is mildly positive, confirming slight upward momentum. Bollinger Bands show price near the mid-range, reflecting consolidation. Current volume (2.26 Cr.) is below the 1-week average (4.35 Cr.), showing reduced participation.
📈 Momentum Signals: Short-term momentum is moderately bullish, supported by MACD and price above moving averages. RSI indicates room for further upside before overbought conditions.
💹 Support & Resistance: Strong support lies near ₹207 (50 DMA) and ₹187 (200 DMA). Immediate resistance is at ₹224 (recent high). Optimal entry zone: ₹205–₹210. Exit zone: ₹220–₹225.
🔄 Trend Status: The stock is currently trending upward with steady momentum, though resistance near ₹224 may trigger consolidation.
Positive
- ✅ EPS of ₹12.9 supports valuation strength.
- ✅ Dividend yield of 1.91% provides steady returns.
- ✅ ROCE of 14.0% and ROE of 12.9% highlight solid efficiency.
- ✅ PAT improved sequentially from ₹4,086 Cr. to ₹4,757 Cr. (+33.8%).
- ✅ FII holdings increased by 1.09%, showing strong foreign investor confidence.
Limitation
- ⚠️ PEG ratio of 4.06 indicates expensive growth expectations.
- ⚠️ Debt-to-equity ratio of 0.51 shows moderate leverage.
- ⚠️ Current volume significantly below average, reflecting weak participation.
Company Negative News
- 📉 DII holdings decreased by -0.31%, showing reduced domestic investor confidence.
- 📉 Stock trading at 79.6% of its 52-week index, reflecting underperformance relative to highs.
Company Positive News
- 📈 Quarterly profit growth of 33.8% highlights strong operational performance.
- 📈 Foreign institutional investors increased holdings, signaling confidence.
Industry
- 🏭 Steel & metals sector trading at industry P/E of 19.0, slightly higher than TATASTEEL’s P/E of 15.5, suggesting relative undervaluation.
- 🏭 Sector supported by infrastructure demand, global commodity cycles, and industrial expansion.
Conclusion
📌 TATASTEEL is trending upward, trading above key moving averages with supportive MACD and RSI. Entry around ₹205–₹210 with exit near ₹220–₹225 offers a favorable short-term setup. Fundamentals show profit growth, efficiency, and dividend yield, but high PEG ratio, moderate leverage, and weak participation are concerns. The stock may consolidate near resistance at ₹224 before resuming its trend.
For broader context, you could explore a steel sector outlook or compare TATASTEEL with peers through a valuation comparison.