TCS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | TCS | Market Cap | 8,95,079 Cr. | Current Price | 2,474 ₹ | High / Low | 3,630 ₹ |
| Stock P/E | 17.1 | Book Value | 234 ₹ | Dividend Yield | 2.43 % | ROCE | 76.7 % |
| ROE | 65.2 % | Face Value | 1.00 ₹ | DMA 50 | 2,586 ₹ | DMA 200 | 2,964 ₹ |
| Chg in FII Hold | -0.71 % | Chg in DII Hold | 0.53 % | PAT Qtr | 14,526 Cr. | PAT Prev Qtr | 12,684 Cr. |
| RSI | 46.1 | MACD | -17.9 | Volume | 44,27,098 | Avg Vol 1Wk | 45,12,311 |
| Low price | 2,346 ₹ | High price | 3,630 ₹ | PEG Ratio | 1.69 | Debt to equity | 0.11 |
| 52w Index | 9.94 % | Qtr Profit Var | 30.7 % | EPS | 136 ₹ | Industry PE | 21.6 |
📈 Chart Patterns & Trend: TCS is trading below both 50 DMA (₹2,586) and 200 DMA (₹2,964), with current price at ₹2,474. The stock is consolidating near support zones after a decline from its high (₹3,630). Trend bias is neutral-to-bearish in the short term.
📊 Indicators: RSI at 46.1 suggests weak momentum, leaning toward oversold territory. MACD negative at -17.9 confirms bearish crossover. Bollinger Bands show price near lower band, reflecting selling pressure and possible mean reversion.
🔎 Volume: Current volume (44.2 Lakh) is slightly below average weekly volume (45.1 Lakh), showing reduced participation and cautious sentiment.
🎯 Entry Zone: ₹2,450–₹2,470 (near support and oversold RSI)
🚪 Exit Zone: ₹2,600–₹2,630 (resistance near 50 DMA)
Positive
- Strong ROCE (76.7%) and ROE (65.2%) highlight exceptional efficiency.
- Quarterly PAT growth of 30.7% (₹14,526 Cr. vs ₹12,684 Cr.).
- EPS of ₹136 supports earnings visibility.
- DII holdings increased by 0.53%, showing domestic confidence.
- Dividend yield of 2.43% adds investor appeal.
Limitation
- Stock trading below both 50 DMA and 200 DMA reflects weak technical strength.
- RSI and MACD show bearish momentum.
- FII holdings decreased by 0.71%, showing reduced foreign interest.
- 52-week index gain of only 9.94% indicates limited upside compared to peers.
Company Negative News
- Weak technical momentum with RSI below 50 and negative MACD.
- Reduced foreign institutional participation signals caution.
Company Positive News
- Strong quarterly profit growth supports earnings momentum.
- Domestic institutional investors increased stake, reflecting confidence.
- Attractive dividend yield provides investor support.
Industry
- Industry PE at 21.6 is higher than TCS’s 17.1, suggesting undervaluation relative to peers.
- IT services sector outlook remains positive with digital transformation and global demand.
Conclusion
TCS is consolidating near support with bearish short-term signals from RSI and MACD. Entry near ₹2,450–₹2,470 offers tactical opportunity, with exit around ₹2,600–₹2,630. Fundamentals remain strong with efficiency and dividend support, but weak technicals and reduced FII interest require cautious positioning.
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