TATATECH - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

📊 Chart Patterns: TATATECH is trading below both its 50 DMA (674 ₹) and 200 DMA (725 ₹), showing weakness. Support lies near 595–610 ₹, while resistance is around 674–725 ₹. The broader chart suggests consolidation with bearish undertone after failing to sustain above moving averages.

📈 Moving Averages: Current price (654 ₹) is below both 50 DMA and 200 DMA, signaling short-term bearish momentum.

📉 RSI: At 36.2, RSI is near oversold territory, suggesting weak momentum but potential for a short-term bounce.

📉 MACD: Negative (-9.81), confirming bearish crossover and downside pressure.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion in the short term.

📊 Volume Trends: Current volume (4,38,117) is lower than average weekly volume (4,96,812), showing reduced participation and lack of strong buying interest.

🚦 Momentum Signals: Short-term momentum remains bearish. A bounce may occur near 595–610 ₹, but recovery requires crossing 674–725 ₹.

🎯 Entry Zone: 595–610 ₹ (near support).

🎯 Exit Zone: 674–725 ₹ (resistance at 50 & 200 DMA).

📌 Trend Status: The stock is consolidating with bearish bias, not yet reversing into an uptrend.

Positive

• Strong ROCE (66.9%) and ROE (58.6%) highlight excellent capital efficiency.
• Low debt-to-equity ratio (0.05) ensures financial stability.
• Dividend yield of 1.29% provides shareholder returns.
• PEG ratio of 0.71 suggests attractive valuation relative to growth.

Limitation

• Stock trading below both 50 & 200 DMA indicates weak technical strength.
• High P/E (40.1) compared to industry average (31.6) suggests overvaluation.
• Volume trends show reduced investor participation.

Company Negative News

• PAT declined sharply from 280 Cr. to 133 Cr. sequentially.
• DII holdings decreased by -0.43%, showing weaker domestic institutional support.

Company Positive News

• EPS of 16.3 ₹ reflects consistent earnings power.
• FII holdings increased by 0.38%, showing foreign investor confidence.
• Quarterly profit variation (+9.01%) indicates recovery momentum despite sequential decline.

Industry

• Industry P/E at 31.6 indicates moderate valuation compared to TATATECH’s elevated levels.
• Technology and engineering services sector remains supported by global demand for digital transformation and innovation.

Conclusion

⚖️ TATATECH is consolidating with bearish bias, trading below key moving averages. Short-term traders may consider entry near 595–610 ₹ with exit around 674–725 ₹. Long-term investors should be cautious due to high valuations and earnings volatility, though strong fundamentals, low debt, and sectoral demand provide resilience.