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TCS - Swing Trade Analysis with AI Signals

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Rating: 3.9

Last Updated Time : 19 Jun 26, 11:28 am

Here’s the structured swing trade analysis for TCS based on the provided parameters

Swing Trade Rating: 3.9

Stock Code TCS Market Cap 7,97,317 Cr. Current Price 2,203 ₹ High / Low 3,490 ₹
Stock P/E 15.3 Book Value 234 ₹ Dividend Yield 2.90 % ROCE 76.7 %
ROE 65.2 % Face Value 1.00 ₹ DMA 50 2,342 ₹ DMA 200 2,770 ₹
Chg in FII Hold -0.71 % Chg in DII Hold 0.53 % PAT Qtr 14,526 Cr. PAT Prev Qtr 12,684 Cr.
RSI 43.3 MACD -49.5 Volume 40,04,689 Avg Vol 1Wk 31,95,251
Low price 2,110 ₹ High price 3,490 ₹ PEG Ratio 1.51 Debt to equity 0.11
52w Index 6.76 % Qtr Profit Var 30.7 % EPS 136 ₹ Industry PE 21.0

📈 Optimal Entry Price: Around 2,150–2,180 ₹ (near support zone)

📉 Exit Strategy: If already holding, consider profit booking near 2,500–2,600 ₹ resistance zone. A stop-loss can be placed below 2,100 ₹.

Positive

  • ✅ Exceptional ROCE (76.7%) and ROE (65.2%) highlight operational efficiency.
  • ✅ EPS of 136 ₹ supports strong earnings power.
  • ✅ Dividend yield of 2.90% provides steady income.
  • ✅ Quarterly PAT improved to 14,526 Cr. from 12,684 Cr. (+30.7% growth).
  • ✅ Strong fundamentals with low debt-to-equity ratio (0.11).

Limitation

  • ⚠️ Current price (2,203 ₹) below both 50 DMA (2,342 ₹) and 200 DMA (2,770 ₹), showing technical weakness.
  • ⚠️ RSI at 43.3 indicates weak momentum.
  • ⚠️ MACD negative (-49.5) reflects bearish trend.
  • ⚠️ FII holdings decreased (-0.71%), showing reduced foreign investor confidence.
  • ⚠️ 52-week index at 6.76% reflects underperformance relative to highs.

Company Negative News

  • 📉 Stock trading near 52-week low zone.
  • 📉 Weak sentiment reflected in declining foreign investor holdings.

Company Positive News

  • 📈 Quarterly profit growth of 30.7% indicates strong earnings momentum.
  • 📈 DII holdings increased (+0.53%), showing domestic investor confidence.
  • 📈 Strong fundamentals with high ROCE and ROE.

Industry

  • 🏭 Industry PE is 21.0, TCS trades at 15.3 — undervalued relative to peers.
  • 🏭 IT services industry benefits from global demand but faces risks from currency fluctuations and client spending cycles.

Conclusion

🔎 TCS is a moderately good candidate for swing trading with caution. Strong fundamentals and undervaluation support long-term strength, but weak technicals and sentiment limit short-term upside. Entry near 2,150–2,180 ₹ offers better risk-reward potential, with exits around 2,500–2,600 ₹ advisable unless momentum improves further.

Would you like me to extend this into a technical chart outlook, a peer comparison, or a short-term forecast to refine your swing trade strategy?

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