TCS - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:02 am
Back to Swing Trade ListSwing Trade Rating: 4.0
| Stock Code | TCS | Market Cap | 11,87,673 Cr. | Current Price | 3,283 ₹ | High / Low | 4,382 ₹ |
| Stock P/E | 24.8 | Book Value | 235 ₹ | Dividend Yield | 1.82 % | ROCE | 78.4 % |
| ROE | 65.0 % | Face Value | 1.00 ₹ | DMA 50 | 3,137 ₹ | DMA 200 | 3,301 ₹ |
| Chg in FII Hold | -1.15 % | Chg in DII Hold | 0.69 % | PAT Qtr | 12,486 Cr. | PAT Prev Qtr | 12,552 Cr. |
| RSI | 68.4 | MACD | 39.3 | Volume | 26,16,446 | Avg Vol 1Wk | 18,60,314 |
| Low price | 2,867 ₹ | High price | 4,382 ₹ | PEG Ratio | 3.11 | Debt to equity | 0.11 |
| 52w Index | 27.4 % | Qtr Profit Var | -3.91 % | EPS | 131 ₹ | Industry PE | 26.4 |
📊 TCS shows strong potential for swing trading. The stock is priced at ₹3,283, trading above both its 50 DMA (₹3,137) and 200 DMA (₹3,301), indicating bullish technical support. RSI (68.4) is approaching overbought territory, while MACD (39.3) confirms positive momentum. Fundamentals are excellent with ROCE (78.4%) and ROE (65.0%), supported by consistent profitability (PAT ₹12,486 Cr.). Valuation is reasonable with a P/E of 24.8 vs industry 26.4, though PEG ratio (3.11) suggests limited growth-adjusted value.
✅ Optimal Entry Price: Around ₹3,200–3,250, near DMA support.
🚪 Exit Strategy: If already holding, consider exiting near ₹3,400–3,450 (resistance zone) or on weakness below ₹3,150.
Positive
- 💡 Strong ROCE (78.4%) and ROE (65.0%) highlight exceptional capital efficiency.
- 💡 Reasonable P/E (24.8) compared to industry average (26.4).
- 💡 Dividend yield of 1.82% adds investor appeal.
- 💡 Trading above DMA levels indicates bullish technical strength.
Limitation
- ⚠️ RSI (68.4) close to overbought zone, limiting immediate upside.
- ⚠️ PEG ratio of 3.11 suggests stretched growth valuation.
- ⚠️ Quarterly profit variation (-3.91%) shows slight earnings decline.
- ⚠️ FII holdings decreased (-1.15%), reflecting weaker foreign sentiment.
Company Negative News
- 📉 PAT declined slightly from ₹12,552 Cr. to ₹12,486 Cr.
- 📉 FII holdings reduced, showing foreign investor caution.
Company Positive News
- 📈 DII holdings increased (+0.69%), reflecting domestic institutional support.
- 📈 Strong EPS (₹131) supports consistent earnings power.
- 📈 52-week gain (+27.4%) highlights resilience and sector leadership.
Industry
- 🏭 Industry P/E at 26.4 shows TCS trading at fair valuation.
- 🏭 IT services sector remains strong, supported by global digital transformation demand.
Conclusion
🔎 TCS is a strong candidate for swing trading. Entry near ₹3,200–3,250 offers a favorable risk-reward setup, while upside is capped around ₹3,400–3,450 due to overbought RSI levels. Best suited for traders looking to capitalize on strong fundamentals and momentum in the IT services sector.
I can also outline stop-loss and trailing exit levels to refine TCS’s swing trade plan if you’d like.
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