TATATECH - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.7

Technical Analysis Report for Tata Technologies Ltd (TATATECH)

• Trend Status: Consolidating near short-term support
• Moving Averages: Price slightly below 50 DMA (₹695) and 200 DMA (₹746) — mildly bearish alignment
• RSI: 53.3 — neutral zone, no strong directional bias
• MACD: Slightly positive at 0.37 — weak bullish crossover
• Bollinger Bands: Price near mid-band — range-bound movement
• Volume: Below weekly average — declining participation

Entry & Exit Zones

• Support Levels: ₹675 (minor support), ₹650 (trendline), ₹595 (52-week low)
• Resistance Levels: ₹695 (DMA 50), ₹720 (gap zone), ₹746 (DMA 200)
• Optimal Entry: ₹675–₹690 (on confirmation of support)
• Optimal Exit: ₹720–₹745 (if momentum builds)

Positive

• ROCE (66.9%) and ROE (58.6%) — exceptional capital efficiency
• MACD turning positive — early sign of momentum recovery
• PEG ratio of 0.75 — attractive growth-adjusted valuation
• Debt-to-equity ratio of 0.05 — low leverage

Limitation

• Price below key moving averages — trend under pressure
• Volume below average — weak momentum confirmation
• High P/E of 42.5 vs industry average of 33.1 — premium valuation

Company Negative News

• DII holding declined by 0.43% — slight domestic institutional outflow
• Quarterly PAT dropped from ₹280 Cr. to ₹133 Cr. — sharp sequential decline

Company Positive News

• Quarterly profit variation of 9.01% — steady YoY growth
• FII holding increased by 0.38% — foreign investor confidence

Industry

• Engineering and digital tech services — high-growth sector driven by automotive and industrial innovation
• Industry P/E of 33.1 — TATATECH trades at a premium

Conclusion

Tata Technologies Ltd is currently consolidating near its 50 DMA with mixed technical signals. While MACD and fundamentals suggest potential upside, weak volume and moving average alignment warrant caution. Traders may consider entries near ₹675 with exits around ₹745, watching for RSI strength and volume confirmation to validate momentum.