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TVSMOTOR - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 03 May 26, 11:25 am

Technical Rating: 3.9

Stock Code TVSMOTOR Market Cap 1,65,943 Cr. Current Price 3,493 ₹ High / Low 3,970 ₹
Stock P/E 47.3 Book Value 205 ₹ Dividend Yield 0.34 % ROCE 34.7 %
ROE 30.6 % Face Value 1.00 ₹ DMA 50 3,621 ₹ DMA 200 3,445 ₹
Chg in FII Hold -0.53 % Chg in DII Hold 0.56 % PAT Qtr 971 Cr. PAT Prev Qtr 906 Cr.
RSI 43.7 MACD -21.3 Volume 10,60,746 Avg Vol 1Wk 8,59,782
Low price 2,625 ₹ High price 3,970 ₹ PEG Ratio 1.09 Debt to equity 0.37
52w Index 64.5 % Qtr Profit Var 57.0 % EPS 73.2 ₹ Industry PE 31.2

📈 Chart Patterns & Trend: TVSMOTOR is trading below its 50 DMA (₹3,621) but slightly above its 200 DMA (₹3,445), with current price at ₹3,493. The stock is consolidating after a pullback from its recent high (₹3,970). Trend bias is neutral-to-bearish in the short term, though long-term structure remains intact.

📊 Indicators: RSI at 43.7 indicates oversold-to-neutral momentum. MACD negative at -21.3 confirms bearish crossover. Bollinger Bands show price near lower band, reflecting selling pressure and possible mean reversion.

🔎 Volume: Current volume (10.6 Lakh) is above average weekly volume (8.6 Lakh), showing heightened activity during decline, suggesting distribution.

🎯 Entry Zone: ₹3,450–₹3,480 (near 200 DMA support)

🚪 Exit Zone: ₹3,850–₹3,900 (resistance near prior highs)


Positive

  • Strong ROCE (34.7%) and ROE (30.6%) highlight operational efficiency.
  • Quarterly PAT growth of 57% (₹971 Cr. vs ₹906 Cr.).
  • EPS of ₹73.2 supports earnings visibility.
  • DII holdings increased by 0.56%, showing domestic confidence.
  • PEG ratio of 1.09 indicates reasonable valuation relative to growth.

Limitation

  • Stock P/E of 47.3 is higher than industry average (31.2), indicating premium valuation.
  • RSI and MACD show weak short-term momentum.
  • FII holdings decreased by 0.53%, showing reduced foreign interest.
  • Price trading below 50 DMA reflects short-term weakness.

Company Negative News

  • Weak technical indicators (negative MACD, low RSI) suggest caution in near term.
  • Premium valuation compared to industry peers.

Company Positive News

  • Strong quarterly profit growth supports earnings momentum.
  • Domestic institutional investors increased stake, reflecting confidence.

Industry

  • Industry PE at 31.2 is lower than TVSMOTOR’s 47.3, highlighting premium valuation.
  • Automobile sector outlook remains positive with demand recovery and export opportunities.

Conclusion

TVSMOTOR is consolidating near support with bearish short-term signals from RSI and MACD. Entry near ₹3,450–₹3,480 offers tactical opportunity, with exit around ₹3,850–₹3,900. Strong fundamentals support long-term growth, but premium valuation and weak momentum require cautious positioning in the near term.

Would you like me to also prepare a short-term intraday setup for TVSMOTOR, with tighter entry/exit levels and stop-loss triggers, alongside this swing/investment view?

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