TCS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | TCS | Market Cap | 11,52,624 Cr. | Current Price | 3,187 ₹ | High / Low | 4,161 ₹ |
| Stock P/E | 23.6 | Book Value | 235 ₹ | Dividend Yield | 1.88 % | ROCE | 78.4 % |
| ROE | 65.0 % | Face Value | 1.00 ₹ | DMA 50 | 3,181 ₹ | DMA 200 | 3,279 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.17 % | PAT Qtr | 12,684 Cr. | PAT Prev Qtr | 12,486 Cr. |
| RSI | 50.0 | MACD | -16.6 | Volume | 33,08,815 | Avg Vol 1Wk | 32,78,662 |
| Low price | 2,867 ₹ | High price | 4,161 ₹ | PEG Ratio | 2.96 | Debt to equity | 0.11 |
| 52w Index | 24.8 % | Qtr Profit Var | 7.20 % | EPS | 126 ₹ | Industry PE | 23.9 |
📈 Chart Patterns & Trend: TCS is trading at 3,187 ₹, almost aligned with the 50 DMA (3,181 ₹) and slightly below the 200 DMA (3,279 ₹), indicating consolidation. RSI at 50.0 suggests neutral momentum. MACD at -16.6 shows mild bearish crossover, signaling short-term weakness. Bollinger Bands place price near the middle range, hinting at sideways consolidation.
📊 Volume Trends: Current volume (33.0 lakh) is in line with the 1-week average (32.7 lakh), reflecting stable participation and balanced sentiment among traders.
🎯 Momentum Signals:
- Price near 50 DMA and slightly below 200 DMA indicates consolidation.
- RSI neutral, suggesting sideways movement.
- MACD negative, reinforcing mild bearish undertone.
💡 Entry Zone: 3,120–3,150 ₹ (near support).
🚪 Exit Zone: 3,250–3,300 ₹ (near 200 DMA resistance).
🔎 Overall Trend: The stock is consolidating between support and resistance levels. Sustained recovery requires crossing 3,279 ₹ (200 DMA) with volume support.
Positive
- Strong ROCE of 78.4% and ROE of 65.0% indicate excellent efficiency.
- EPS of 126 ₹ supports robust earnings base.
- Quarterly PAT improved (12,684 Cr. vs 12,486 Cr.), showing growth momentum.
- Dividend yield of 1.88% provides steady income for investors.
Limitation
- Stock trading below 200 DMA, showing medium-term weakness.
- MACD negative, signaling short-term bearish momentum.
- PEG ratio of 2.96 suggests valuation concerns relative to growth.
Company Negative News
- Stock price corrected from highs of 4,161 ₹ to 3,187 ₹.
- MACD bearish crossover indicates short-term weakness.
Company Positive News
- Quarterly profit variation improved (+7.2%).
- FII (+0.04%) and DII (+0.17%) holdings both increased, showing institutional confidence.
- Strong fundamentals with high ROCE and ROE.
Industry
- Industry PE at 23.9 is aligned with TCS’s PE of 23.6, indicating fair valuation.
- IT services sector supported by global demand for digital transformation and outsourcing.
- Sector consolidation favors large-cap leaders like TCS.
Conclusion
TCS is consolidating near support levels with mixed momentum signals. Entry near 3,120–3,150 ₹ offers favorable risk-reward, while resistance lies at 3,250–3,300 ₹. The stock needs stronger volume and a break above 3,279 ₹ to confirm bullish reversal. Long-term fundamentals remain strong, but short-term traders should be cautious until momentum improves.
I can also prepare a comparative snapshot of TCS vs TATACOMM to highlight which one offers stronger near-term trading potential.