TCS - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📉 Current Price: ₹2,990

📊 Optimal Entry Price: ₹2,950–2,975 (near RSI support and recent low)

📈 Suggested Exit (if holding): ₹3,150–3,200 (approaching 50 DMA resistance)

🔷 Positive

• 📈 Exceptional ROCE & ROE: ROCE at 78.4% and ROE at 65.0% reflect world-class capital efficiency
• 📉 Low Debt: Debt-to-equity ratio of 0.11 indicates strong financial health
• 📈 EPS Strength: ₹131 supports valuation and earnings visibility
• 📊 MACD Positive: 0.79 suggests early bullish momentum
• 📈 Dividend Yield: 2.01% adds to investor appeal
• 📊 Volume Strength: Current volume (28.04L) above 1-week average (24.85L)

⚠️ Limitation

• 📉 RSI at 44.7: Neutral zone, lacks strong directional signal
• 📉 Below DMA Levels: Price trading below both 50 DMA (₹3,053) and 200 DMA (₹3,354)
• 📉 PEG Ratio: 2.83 implies expensive valuation relative to growth
• 📉 Quarterly PAT Dip: Profit fell slightly from ₹12,552 Cr to ₹12,486 Cr

🚫 Company Negative News

• 📉 FII Selling: Foreign institutional holding declined by 1.15%

✅ Company Positive News

• 💻 Digital Transformation Leadership: Continued growth in cloud, AI, and enterprise tech services
• 📈 DII Buying: Domestic institutional holding increased by 0.69%

🏭 Industry

• 🧠 IT Services Sector: Supported by global demand for digital solutions and outsourcing
• 📉 Valuation Pressure: Sector trading at elevated multiples amid margin compression and macro uncertainty

🧾 Conclusion

TCS presents a strong swing trade setup with elite fundamentals, institutional support, and early technical momentum. While valuation is rich and RSI is neutral, the stock’s stability and sector leadership support short-term upside. Entry near ₹2,950–2,975 is ideal, with exit near ₹3,150–3,200. Monitor MACD and RSI for confirmation before initiating trades.

I can chart TCS’s price action with support and resistance zones to help you time your trade more precisely.