TATATECH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | TATATECH | Market Cap | 23,606 Cr. | Current Price | 581 ₹ | High / Low | 797 ₹ |
| Stock P/E | 34.1 | Book Value | 39.2 ₹ | Dividend Yield | 1.44 % | ROCE | 66.9 % |
| ROE | 58.6 % | Face Value | 2.00 ₹ | DMA 50 | 576 ₹ | DMA 200 | 647 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | 0.52 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 133 Cr. |
| RSI | 54.5 | MACD | 4.80 | Volume | 14,42,128 | Avg Vol 1Wk | 16,64,031 |
| Low price | 507 ₹ | High price | 797 ₹ | PEG Ratio | 0.60 | Debt to equity | 0.05 |
| 52w Index | 25.5 % | Qtr Profit Var | 30.8 % | EPS | 13.7 ₹ | Industry PE | 26.0 |
📈 Chart Patterns & Trend: TATATECH is trading slightly above its 50 DMA (₹576) but below its 200 DMA (₹647), with current price at ₹581. The stock has rebounded from its low (₹507) but remains capped under medium-term resistance. Trend bias is consolidating-to-bullish in the short term, though medium-term weakness persists.
📊 Indicators: RSI at 54.5 indicates neutral momentum. MACD positive at 4.80 confirms bullish crossover. Bollinger Bands show price near mid-band, suggesting consolidation with mild upward bias.
🔎 Volume: Current volume (14.4 Lakh) is slightly below average weekly volume (16.6 Lakh), showing moderate participation and accumulation interest.
🎯 Entry Zone: ₹570–₹580 (near 50 DMA support)
🚪 Exit Zone: ₹610–₹620 (resistance zone, short-term target)
Positive
- Strong ROCE (66.9%) and ROE (58.6%) highlight exceptional efficiency.
- Quarterly PAT growth of 30.8% (₹135 Cr. vs ₹133 Cr.).
- EPS of ₹13.7 supports earnings visibility.
- FII holdings increased by 0.26% and DII holdings by 0.52%, showing institutional confidence.
- PEG ratio of 0.60 indicates fair valuation relative to growth.
- Low debt-to-equity ratio (0.05) ensures financial stability.
Limitation
- Stock trading below 200 DMA (₹647) reflects medium-term weakness.
- Volume slightly below average suggests limited momentum strength.
- High volatility with wide 52-week range (₹507–₹797).
Company Negative News
- Price capped below 200 DMA, limiting medium-term upside.
- Moderate volume participation compared to prior rallies.
Company Positive News
- Strong quarterly profit growth supports earnings momentum.
- Institutional investors increased stake, reflecting confidence.
- Low leverage and strong efficiency metrics provide stability.
Industry
- Industry PE at 26.0 is lower than TATATECH’s 34.1, indicating premium valuation.
- Engineering and technology services sector outlook remains positive with demand for digital transformation and automation.
Conclusion
TATATECH is consolidating near support with bullish signals from MACD and moving averages, but medium-term weakness persists below the 200 DMA. Entry near ₹570–₹580 offers favorable risk-reward, with exit around ₹610–₹620. Fundamentals remain strong with efficiency and growth support, but cautious positioning is advised due to volatility and resistance overhead.
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