TATATECH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | TATATECH | Market Cap | 25,918 Cr. | Current Price | 639 ₹ | High / Low | 803 ₹ |
| Stock P/E | 37.5 | Book Value | 39.2 ₹ | Dividend Yield | 1.31 % | ROCE | 66.9 % |
| ROE | 58.6 % | Face Value | 2.00 ₹ | DMA 50 | 659 ₹ | DMA 200 | 707 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | 0.04 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 133 Cr. |
| RSI | 42.8 | MACD | -2.98 | Volume | 6,30,158 | Avg Vol 1Wk | 7,76,330 |
| Low price | 595 ₹ | High price | 803 ₹ | PEG Ratio | 0.66 | Debt to equity | 0.05 |
| 52w Index | 21.0 % | Qtr Profit Var | 30.8 % | EPS | 13.7 ₹ | Industry PE | 25.7 |
📈 Chart Patterns & Trend: TATATECH is trading at 639 ₹, below both the 50 DMA (659 ₹) and 200 DMA (707 ₹), indicating short-term weakness. RSI at 42.8 suggests neutral momentum leaning toward oversold territory. MACD at -2.98 shows mild bearish crossover, signaling short-term pressure. Bollinger Bands place price near the lower-middle range, hinting at consolidation with bearish undertone.
📊 Volume Trends: Current volume (6.3 lakh) is lower than the 1-week average (7.7 lakh), reflecting reduced participation and cautious sentiment among traders.
🎯 Momentum Signals:
- Price below both 50 DMA and 200 DMA confirms bearish bias.
- RSI near oversold zone may trigger a technical bounce.
- MACD negative, reinforcing weak momentum.
💡 Entry Zone: 620–635 ₹ (near support).
🚪 Exit Zone: 660–670 ₹ (near 50 DMA resistance).
🔎 Overall Trend: The stock is consolidating near support levels with mild bearish undertone. Sustained recovery requires crossing 659–707 ₹ with volume support.
Positive
- Strong ROCE of 66.9% and ROE of 58.6% indicate excellent efficiency.
- EPS of 13.7 ₹ supports valuation strength.
- Dividend yield of 1.31% provides steady income for investors.
- FII (+0.26%) and DII (+0.04%) holdings both increased, showing institutional confidence.
Limitation
- Stock trading below both 50 DMA and 200 DMA, confirming weakness.
- High P/E of 37.5 compared to industry PE of 25.7, suggesting premium valuation.
- PEG ratio of 0.66 highlights valuation concerns relative to growth.
- Volume trends show declining investor participation.
Company Negative News
- Stock price corrected from highs of 803 ₹ to 639 ₹.
- MACD negative, signaling short-term weakness.
Company Positive News
- Quarterly PAT improved slightly (135 Cr. vs 133 Cr.).
- Quarterly profit variation surged (+30.8%), highlighting earnings momentum.
- Strong fundamentals with low debt-to-equity ratio (0.05).
Industry
- Industry PE at 25.7 is lower than TATATECH’s PE, highlighting premium valuation.
- Technology and engineering services sector supported by global demand for digital transformation and product innovation.
- Sector consolidation favors established players like TATATECH.
Conclusion
TATATECH is consolidating near support levels with weak momentum signals. Entry near 620–635 ₹ offers limited risk, while resistance lies at 660–670 ₹. The stock needs stronger volume and a break above 659–707 ₹ to confirm bullish reversal. Long-term fundamentals remain strong, but short-term traders should be cautious until momentum improves.
I can also prepare a comparative snapshot of TATATECH vs TATASTEEL to highlight which one offers stronger near-term trading potential.