Tata Elxsi May Be Nearing A Breakout Above ₹5,750: SEBI Analyst

Tata Elxsi shares continued to remain under pressure after reporting a weak September quarter earnings report last week. However, analysts believe that after months of drifting lower, Tata Elxsi appears to be finding its footing. Technical charts show that the stock has been trading inside what traders call a falling wedge, which is a narrowing pattern that often signals a potential trend reversal. 

According to SEBI-registered analyst Rajneesh Sharma, the structure has been tightening in recent weeks, with prices making lower highs and lower lows while momentum indicators quietly start to turn.

On the daily chart, the Relative Strength Index (RSI), which tracks the strength of price movements, has begun forming higher lows even as the stock’s price slipped lower, a sign that selling pressure is fading. 

Trading volumes have also picked up during rebounds from recent lows, suggesting that some accumulation is taking place beneath the surface. Sharma said that a sustained move above ₹5,600–₹5,750 could confirm the breakout and set the stage for a short-term rally toward ₹6,200–₹6,400.

Broader Weekly Setup Strengthening

The longer-term picture tells a similar story. On the weekly chart, Tata Elxsi continues to respect its lower trendline support within a broad downward channel. Sharma said the RSI on this timeframe is also showing bullish divergence, which is when momentum begins improving even though the price has yet to follow, often a precursor to a shift in trend.

A weekly close above ₹5,750, he added, would mark a meaningful reversal signal and could transition the stock from a consolidation phase into a recovery phase.

Support And Resistance Zones

The stock’s immediate support sits around ₹5,200, a level that has held firm through multiple tests and coincides with both horizontal and trendline support. On the upside, key resistance levels lie at ₹5,750 (the breakout trigger), ₹6,772 (medium-term resistance), and ₹7,942 (the long-term supply zone).

Momentum indicators are also showing encouraging signs. The weekly RSI has started to turn up from around 41, indicating that sentiment is gradually improving even before prices fully react.

Outlook

Sharma believes a breakout above ₹5,750 with strong volume could confirm a reversal and open the path toward ₹6,200–₹6,400, with a possible extension to ₹6,800 if momentum sustains. 

However, he cautioned that a drop below ₹5,200 would negate the setup and potentially drag the stock back toward ₹4,800.

He said that as long as ₹5,200 holds, Tata Elxsi’s current setup offers a favorable risk-reward opportunity for investors looking at the medium to long term, as both price structure and momentum appear to be aligning for a potential turnaround.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘neutral’ amid ‘high’ message volume.

Tata Elxsi’s stock has declined 21% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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