Analyzing TBO Tek Ltd. (NSE: TBOTEK) on the 4-hour (4H) timeframe provides insights into its short- to medium-term price action. Here’s a detailed breakdown based on available technical indicators:
Price Overview
- Current Price: ₹1,320.90
- 52-Week Range: ₹996 – ₹2,001
- Recent Performance: The stock has appreciated approximately 23% over the past month, rebounding from its 52-week low of ₹996.
Technical Indicators (4H Timeframe)
Moving Averages:
- Short-Term (MA5): ₹1,306.96 (Sell)
- Medium-Term (MA10 – MA50): Ranging from ₹1,259.50 to ₹1,219.62 (Buy)
- Long-Term (MA100 – MA200): Ranging from ₹1,183.97 to ₹1,128.78 (Buy)
The moving averages suggest a bullish trend in the medium to long term, while the short-term MA indicates a potential pullback.
Momentum Oscillators:
- Relative Strength Index (RSI 14): 62.478 (Buy)
- MACD (12,26): 27.35 (Buy)
- Stochastic Oscillator (9,6): 58.032 (Buy)
- Commodity Channel Index (CCI 14): 125.15 (Buy)
- Average Directional Index (ADX 14): 36.407 (Buy)
These indicators reflect strong bullish momentum, with the RSI approaching overbought territory.
Volatility & Trend Strength:
- Average True Range (ATR 14): 36.8 (High Volatility)
- Rate of Change (ROC): 5.323 (Buy)
- Bull/Bear Power (13): 134.208 (Buy)
The high ATR indicates significant price fluctuations, suggesting active trading and potential for rapid price movements.
Chart Patterns & Price Action
While specific chart patterns on the 4H timeframe are not detailed in the provided data, the combination of bullish indicators suggests a continuation of the upward trend. However, traders should watch for potential reversal patterns or consolidation phases, especially given the high volatility.
Key Levels
Pivot Points (Classic):
- Support Levels:
- S1: ₹1,312.66
- S2: ₹1,270.33
- S3: ₹1,239.66
- Resistance Levels:
- R1: ₹1,385.66
- R2: ₹1,416.33
- R3: ₹1,458.66
These levels can serve as potential entry or exit points, depending on price action and volume confirmation.
Trading Strategy Recommendations
- For Short-Term Traders: Given the bullish momentum and high volatility, traders might consider entering long positions on pullbacks near support levels, with tight stop-loss orders to manage risk.
- For Medium-Term Investors: The upward trend in medium to long-term moving averages suggests holding existing positions or considering entry on confirmed breakouts above resistance levels.
- Risk Management: Due to high volatility (ATR 14 at 36.8), it’s crucial to employ appropriate position sizing and risk management strategies.
As of May 25, 2025, TBO Tek Ltd. (NSE: TBOTEK) is experiencing a notable recovery in its stock performance, driven by strong financial results and renewed investor interest.
Current Stock Performance
- Current Price: ₹1,320.90
- 52-Week Range: ₹996 – ₹2,001
- Market Cap: ₹14,343 crore
- P/E Ratio: ~62.4
- Book Value per Share: ₹110
- Dividend Yield: 0%
The stock has appreciated approximately 23% over the past month, rebounding from its 52-week low of ₹996.
Recent Developments
- Q4 FY25 Results: TBO Tek reported a 26% year-on-year increase in consolidated net profit, reaching ₹59 crore.
- Block Deal Activity: In March, Augusta TBO Singapore Pte Ltd and TBO Korea Holdings Ltd sold a combined 3.1% stake via a ₹400 crore block deal at ₹1,180 per share, leading to a temporary dip in share price.
- Institutional Interest: Nippon India Mutual Fund acquired 28 lakh shares during the aforementioned block deal, indicating confidence from institutional investors.
Investment Considerations
Pros:
- Strong financial performance with significant profit growth.
- Positive institutional investment activity.
- Analyst consensus suggests potential for further upside.
Cons:
- High P/E ratio (~62.4) may indicate overvaluation.
- Recent volatility due to block deals and stake sales.
- No dividend payout, which may be a consideration for income-focused investors.
Recommendation
TBO Tek demonstrates strong growth potential and has garnered positive attention from analysts and institutional investors. However, the high valuation and recent market volatility warrant cautious optimism. Investors should consider their risk tolerance and investment horizon when evaluating this stock.
