TCS - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.4
| Stock Code | TCS | Market Cap | 8,52,299 Cr. | Current Price | 2,356 ₹ | High / Low | 3,710 ₹ |
| Stock P/E | 17.4 | Book Value | 235 ₹ | Dividend Yield | 2.55 % | ROCE | 78.4 % |
| ROE | 65.0 % | Face Value | 1.00 ₹ | DMA 50 | 2,761 ₹ | DMA 200 | 3,106 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.17 % | PAT Qtr | 12,684 Cr. | PAT Prev Qtr | 12,486 Cr. |
| RSI | 22.3 | MACD | -130 | Volume | 31,73,625 | Avg Vol 1Wk | 32,44,205 |
| Low price | 2,350 ₹ | High price | 3,710 ₹ | PEG Ratio | 2.19 | Debt to equity | 0.11 |
| 52w Index | 0.43 % | Qtr Profit Var | 7.20 % | EPS | 126 ₹ | Industry PE | 20.8 |
Analysis: Tata Consultancy Services (TCS) shows moderate potential for swing trading. The RSI at 22.3 indicates oversold conditions, suggesting possible rebound opportunities. However, the MACD (-130) reflects strong bearish momentum. The current price (₹2,356) is well below both the 50 DMA (₹2,761) and 200 DMA (₹3,106), signaling short-term and long-term weakness. Despite this, fundamentals remain strong: quarterly profit grew (+7.2%), EPS is robust (₹126), and return ratios are excellent (ROCE 78.4%, ROE 65.0%). The P/E (17.4) is lower than the industry average (20.8), making the stock relatively undervalued. Institutional confidence is stable, with slight increases in both FII (+0.04%) and DII (+0.17%) holdings.
Optimal Entry Price: Around ₹2,340–2,360, near current support levels and oversold RSI zone.
Exit Strategy (if already holding): Consider exiting near ₹2,700–2,800 if momentum recovers, or cut losses if price falls below ₹2,320.
✅ Positive
- Strong quarterly profit growth (+7.2%).
- EPS of ₹126 supports earnings strength.
- Excellent return ratios (ROCE 78.4%, ROE 65.0%).
- P/E (17.4) lower than industry average (20.8), indicating undervaluation.
- Dividend yield of 2.55% provides steady returns.
⚠️ Limitation
- Price trading below both 50 DMA and 200 DMA reflects bearish trend.
- MACD negative (-130), showing strong bearish momentum.
- RSI oversold, but recovery may take time.
📰 Company Negative News
- Stock trading near 52-week low (₹2,350 vs. high ₹3,710).
- Bearish technical indicators limit short-term upside.
🌟 Company Positive News
- Strong fundamentals with consistent profit growth.
- Excellent efficiency reflected in ROCE and ROE.
- Dividend yield supports investor interest.
- Institutional investors (FII and DII) increased holdings slightly.
🏦 Industry
- IT services sector PE (20.8) is higher than TCS’s PE (17.4), making the stock relatively undervalued.
- Industry supported by global demand for digital transformation, though margin pressures remain.
📌 Conclusion
TCS is a moderately good candidate for swing trading with strong fundamentals and undervaluation, but bearish technicals limit short-term upside. Entry near ₹2,340–2,360 offers better risk-reward. Exit near ₹2,700–2,800 if momentum recovers, or below ₹2,320 to protect capital.