TECHM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.1
| Stock Code | TECHM | Market Cap | 1,31,249 Cr. | Current Price | 1,341 ₹ | High / Low | 1,854 ₹ |
| Stock P/E | 31.2 | Book Value | 221 ₹ | Dividend Yield | 3.36 % | ROCE | 18.2 % |
| ROE | 14.0 % | Face Value | 5.00 ₹ | DMA 50 | 1,470 ₹ | DMA 200 | 1,521 ₹ |
| Chg in FII Hold | -2.66 % | Chg in DII Hold | 3.15 % | PAT Qtr | 1,139 Cr. | PAT Prev Qtr | 1,176 Cr. |
| RSI | 35.0 | MACD | -52.2 | Volume | 12,77,344 | Avg Vol 1Wk | 18,59,132 |
| Low price | 1,209 ₹ | High price | 1,854 ₹ | PEG Ratio | -2.21 | Debt to equity | 0.05 |
| 52w Index | 20.4 % | Qtr Profit Var | 32.7 % | EPS | 41.1 ₹ | Industry PE | 20.8 |
📊 TECHM shows moderate potential for swing trading. The fundamentals are relatively strong with positive EPS (41.1 ₹), healthy ROE (14%), and a solid dividend yield (3.36%). However, technical indicators suggest weakness: RSI at 35 indicates oversold conditions, MACD (-52.2) signals bearish momentum, and the current price (1,341 ₹) is below both the 50 DMA (1,470 ₹) and 200 DMA (1,521 ₹). This points to a short-term downtrend.
✅ Optimal Entry Price: Around 1,300–1,320 ₹ (near support levels).
🚪 Exit Strategy: If already holding, consider exiting near 1,470–1,500 ₹ (50 DMA resistance) unless strong momentum reversal occurs.
🌟 Positive
- Strong EPS of 41.1 ₹ and consistent profitability.
- Dividend yield of 3.36% adds investor appeal.
- Low debt-to-equity ratio (0.05), showing financial stability.
- ROCE of 18.2% reflects efficient capital use.
⚠️ Limitation
- Stock trades below both 50 DMA and 200 DMA, signaling bearish trend.
- RSI and MACD indicate weak momentum.
- PEG ratio is negative (-2.21), suggesting poor growth prospects relative to valuation.
📰 Company Negative News
- Quarterly PAT declined slightly from 1,176 Cr. to 1,139 Cr.
- FII holdings decreased by -2.66%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased by 3.15%, showing domestic institutional support.
- Quarterly profit variation improved by 32.7% YoY.
- Strong dividend payout history enhances investor trust.
🏭 Industry
- Industry PE is 20.8, lower than TECHM’s PE of 31.2, indicating the stock is relatively expensive compared to peers.
- IT services sector remains resilient but faces margin pressures due to global slowdown.
🔎 Conclusion
TECHM is a moderately suitable candidate for swing trading. While fundamentals are strong, technical indicators suggest caution. Traders may enter near 1,300–1,320 ₹ with a short-term target of 1,470–1,500 ₹. Risk management is essential, as the stock remains in a bearish phase despite long-term stability.