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TATATECH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | TATATECH | Market Cap | 22,280 Cr. | Current Price | 549 ₹ | High / Low | 797 ₹ |
| Stock P/E | 32.2 | Book Value | 39.2 ₹ | Dividend Yield | 1.52 % | ROCE | 66.9 % |
| ROE | 58.6 % | Face Value | 2.00 ₹ | DMA 50 | 602 ₹ | DMA 200 | 674 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | 0.04 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 133 Cr. |
| RSI | 36.7 | MACD | -22.0 | Volume | 31,54,065 | Avg Vol 1Wk | 14,87,048 |
| Low price | 520 ₹ | High price | 797 ₹ | PEG Ratio | 0.57 | Debt to equity | 0.05 |
| 52w Index | 10.3 % | Qtr Profit Var | 30.8 % | EPS | 13.7 ₹ | Industry PE | 23.1 |
📊 Technical Analysis
- Chart Patterns: Stock has corrected from highs of ₹797, currently near ₹549 with strong support at ₹520–₹540 and resistance around ₹600–₹610.
- Moving Averages: Price (₹549) below both 50 DMA (₹602) and 200 DMA (₹674), confirming bearish trend.
- RSI: 36.7 — approaching oversold zone, suggesting potential rebound.
- MACD: -22.0 — bearish crossover, momentum negative.
- Bollinger Bands: Price near lower band, oversold condition may trigger short-term bounce.
- Volume Trends: Current volume (31.5 Lakh) above 1-week average (14.8 Lakh), showing strong participation during correction.
📈 Momentum & Signals
- Short-term Momentum: Weak, with bearish bias but oversold signals hint at possible rebound.
- Entry Zone: ₹520–₹549 (support region).
- Exit Zone: ₹600–₹610 (resistance region).
- Trend Status: Reversing from uptrend to bearish consolidation.
✅ Positive
- Strong ROCE (66.9%) and ROE (58.6%), showing excellent efficiency.
- Dividend yield at 1.52%, attractive for income investors.
- Sequential PAT growth (₹135 Cr vs ₹133 Cr).
- FII holdings increased (+0.26%) and DII holdings increased (+0.04%).
- Low debt-to-equity ratio (0.05), financially stable.
⚠️ Limitation
- Stock P/E (32.2) above industry average (23.1), indicating expensive valuation.
- PEG ratio at 0.57, showing limited growth visibility.
- Price below both 50 DMA and 200 DMA, confirming bearish trend.
- Weak 52-week performance (10.3%), underperforming peers.
📉 Company Negative News
- Stock has lost significant value from 52-week highs (₹797 to ₹549).
- Quarterly profit variation (+30.8%) shows growth but at slower pace compared to peers.
📈 Company Positive News
- Strong efficiency metrics (ROCE and ROE).
- Sequential PAT growth despite market correction.
- Dividend yield of 1.52% provides steady returns.
- Institutional participation increased (FII and DII).
🔧 Industry
- Engineering & technology services sector PE at 23.1, showing moderate valuations compared to Tata Tech’s premium pricing.
- Industry supported by demand in automotive engineering, digital transformation, and product design services.
🔎 Conclusion
- TATATECH is in a bearish consolidation phase, trading below key moving averages.
- Oversold RSI and Bollinger Band signals suggest potential rebound near ₹520–₹549.
- Short-term traders can accumulate near support and exit around ₹600–₹610.
- Long-term investors should be cautious due to high valuations despite strong efficiency metrics and dividend yield.