TECHM - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.7

📊 TECHM shows signs of technical weakness but has strong fundamentals. Ideal for short-term bounce trades near support zones. Entry around ₹1,360–₹1,380 is optimal. If already held, consider exiting near ₹1,470–₹1,500.

📈 Positive

• Strong ROCE (18.2%) and ROE (14%) indicate efficient capital deployment.
• Low Debt-to-Equity (0.05) reflects financial prudence.
• Attractive Dividend Yield (3.19%) adds passive income potential.
• RSI (36.6) suggests oversold conditions, hinting at a possible technical rebound.
• MACD at -11.9 may be bottoming out soon.

⚠️ Limitation

• High P/E (35.2) compared to industry average (29.7) implies overvaluation.
• Negative PEG (-2.49) signals poor growth relative to valuation.
• Volume below 1-week average indicates weak momentum.
• Quarterly profit decline (-8.18%) raises short-term caution.

🚫 Company Negative News

• Quarterly PAT slightly declined from ₹1,178 Cr. to ₹1,176 Cr.
• FII holdings dropped by 2.68%, showing reduced foreign investor confidence.

✅ Company Positive News

• Recent order wins hit a 14-quarter high with $816M in TCV.
• Revenue growth and margin expansion beat analyst expectations.
• Domestic Institutional Investors (DII) increased holdings by 2.51%.

🌐 Industry

• TECHM operates in the IT services and consulting sector, which remains competitive but resilient.
• Industry P/E of 29.7 suggests moderate valuation pressure.

🧾 Conclusion

• TECHM is a moderate swing trade candidate with potential for a short-term bounce.
• Optimal entry: ₹1,360–₹1,380 (near support and RSI zone).
• Exit target: ₹1,470–₹1,500 (near 50-DMA and resistance).
• Watch for volume recovery and MACD crossover before entry confirmation.

Would you like a visual chart of TECHM’s RSI and MACD trends to time your entry more precisely?