TATASTEEL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.6

📊 Chart Patterns: TATASTEEL is trading close to its 50 DMA (170 ₹) and above its 200 DMA (163 ₹). Support lies near 163–165 ₹, while resistance is around 180–187 ₹. The broader chart suggests consolidation with mild bullish undertone.

📈 Moving Averages: Current price (169 ₹) is slightly below 50 DMA but above 200 DMA, indicating short-term weakness but medium-term strength.

📉 RSI: At 47.3, RSI is neutral, suggesting balanced momentum without strong overbought or oversold signals.

📉 MACD: Slightly negative (-0.97), showing mild bearish crossover and short-term weakness.

📊 Bollinger Bands: Price is near the mid-band, indicating consolidation. A breakout above 175–180 ₹ could trigger momentum toward 187 ₹.

📊 Volume Trends: Current volume (1,36,61,364) is lower than average weekly volume (1,93,61,945), showing reduced participation and lack of strong buying interest.

🚦 Momentum Signals: Short-term momentum is mildly bearish. Sustained move above 175 ₹ is required for confirmation of bullish reversal.

🎯 Entry Zone: 163–168 ₹ (near 200 DMA support).

🎯 Exit Zone: 180–187 ₹ (resistance zone).

📌 Trend Status: The stock is consolidating with mild bullish undertone.

Positive

• Strong quarterly PAT growth from 3,693 Cr. to 4,360 Cr. (+21.8%).
• Healthy ROCE (12.7%) and ROE (10.9%) indicate decent capital efficiency.
• Dividend yield of 2.13% provides steady shareholder returns.
• Institutional support with FII holdings up 0.07% and DII holdings up 0.85%.

Limitation

• PEG ratio of -0.57 suggests negative growth prospects.
• Debt-to-equity ratio of 0.52 indicates moderate leverage risk.
• Stock trading below 50 DMA shows short-term weakness.

Company Negative News

• MACD remains negative, signaling short-term bearishness.
• Volume trends show reduced investor participation compared to weekly averages.

Company Positive News

• PAT improved sequentially, highlighting operational strength.
• EPS of 11.7 ₹ reflects consistent earnings power.
• Strong institutional inflows (DII +0.85%) show confidence in long-term growth potential.

Industry

• Industry P/E at 20.9 indicates moderate valuation compared to TATASTEEL’s lower P/E (13.5).
• Steel sector remains cyclical but supported by infrastructure demand and global recovery trends.

Conclusion

⚖️ TATASTEEL is consolidating with mild bullish undertone, trading near its 50 DMA and above 200 DMA. Short-term traders may consider entry near 163–168 ₹ with exit around 180–187 ₹. Long-term investors may find value in strong fundamentals and sectoral demand, though caution is warranted due to leverage and weak short-term momentum.