TCS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | TCS | Market Cap | 10,85,893 Cr. | Current Price | 3,000 ₹ | High / Low | 4,161 ₹ |
| Stock P/E | 22.2 | Book Value | 235 ₹ | Dividend Yield | 2.00 % | ROCE | 78.4 % |
| ROE | 65.0 % | Face Value | 1.00 ₹ | DMA 50 | 3,175 ₹ | DMA 200 | 3,275 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.17 % | PAT Qtr | 12,684 Cr. | PAT Prev Qtr | 12,486 Cr. |
| RSI | 35.8 | MACD | -23.5 | Volume | 1,18,15,302 | Avg Vol 1Wk | 46,89,345 |
| Low price | 2,867 ₹ | High price | 4,161 ₹ | PEG Ratio | 2.79 | Debt to equity | 0.11 |
| 52w Index | 10.3 % | Qtr Profit Var | 7.20 % | EPS | 126 ₹ | Industry PE | 24.8 |
📊 TCS shows moderate potential for swing trading. The stock is trading below both its 50 DMA (3,175 ₹) and 200 DMA (3,275 ₹), indicating weak technical momentum. RSI at 35.8 suggests the stock is approaching oversold territory, while MACD at -23.5 confirms bearish sentiment. Fundamentally, the company is very strong with ROCE at 78.4% and ROE at 65.0%, supported by solid EPS (126 ₹). Valuation is reasonable with a P/E of 22.2 compared to the industry average of 24.8, and dividend yield of 2.00% adds investor appeal. Overall, the stock may offer a rebound opportunity but requires caution due to current technical weakness.
✅ Optimal Entry Price: Around 2,950–3,000 ₹ (near support levels)
🚪 Exit Strategy: If already holding, consider booking profits near 3,150–3,200 ₹ resistance zone, or exit if price falls below 2,870 ₹ support.
Positive
- Strong fundamentals with ROCE (78.4%) and ROE (65.0%)
- EPS of 126 ₹ supports earnings strength
- Dividend yield of 2.00% provides passive income
- Quarterly PAT growth (+7.2%) shows consistent performance
- FII (+0.04%) and DII (+0.17%) holdings increased, showing institutional confidence
Limitation
- Stock trading below both 50 DMA and 200 DMA, showing weak technical trend
- RSI at 35.8 indicates oversold but also weak momentum
- MACD negative (-23.5), confirming bearish sentiment
- PEG ratio (2.79) suggests overvaluation relative to growth
Company Negative News
- Stock trading near lower end of 52-week index (10.3%)
- Weak technical indicators despite strong fundamentals
Company Positive News
- Quarterly PAT improved (12,684 Cr vs 12,486 Cr)
- Strong fundamentals with high efficiency ratios
- Dividend yield supports investor returns
Industry
- IT services sector remains resilient with global demand
- Industry PE at 24.8, showing TCS trades at fair valuation
- Sector outlook supported by digital transformation and outsourcing growth
Conclusion
⚖️ TCS is a fair candidate for swing trading with strong fundamentals but weak technicals. Entry near 2,950–3,000 ₹ offers a favorable risk-reward setup, while profit booking should be considered around 3,150–3,200 ₹. Caution is advised as momentum remains bearish, but long-term fundamentals and sector strength provide stability.