TCS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

Technical Analysis Report for Tata Consultancy Services Ltd (TCS)

• Trend Status: Consolidating near short-term support
• Moving Averages: Price at 50 DMA (₹3,057) and below 200 DMA (₹3,362) — neutral to mildly bearish
• RSI: 53.9 — neutral zone, no strong directional bias
• MACD: Positive at 6.87 — mild bullish crossover
• Bollinger Bands: Price near mid-band — range-bound movement
• Volume: Below weekly average — momentum slowing, needs confirmation

Entry & Exit Zones

• Support Levels: ₹3,000 (minor support), ₹2,940 (trendline), ₹2,867 (52-week low)
• Resistance Levels: ₹3,150 (minor resistance), ₹3,362 (DMA 200), ₹3,500 (gap zone)
• Optimal Entry: ₹3,000–₹3,060 (on confirmation of support)
• Optimal Exit: ₹3,350–₹3,500 (if momentum sustains)

Positive

• ROCE (78.4%) and ROE (65.0%) — exceptional capital efficiency
• MACD positive — early signs of bullish momentum
• EPS of ₹131 — strong earnings base
• DII holding increased by 0.69% — domestic institutional support

Limitation

• Price below 200 DMA — long-term trend under pressure
• Volume below average — weak participation
• PEG ratio of 2.89 — expensive on growth-adjusted basis

Company Negative News

• FII holding declined by 1.15% — foreign investor pullback
• Quarterly PAT declined slightly from ₹12,552 Cr. to ₹12,486 Cr.

Company Positive News

• Dividend yield of 1.96% — attractive for income investors
• Strong fundamentals and consistent profitability

Industry

• IT services and consulting — stable demand with long-term digital transformation tailwinds
• Industry P/E of 29.4 — TCS trades at a discount (P/E of 23.0)

Conclusion

Tata Consultancy Services Ltd is currently consolidating near its 50 DMA with mixed technical signals. While MACD and fundamentals support a potential upside, volume and long-term moving average alignment suggest caution. Traders may consider entries near ₹3,000 with exits around ₹3,500, watching for RSI strength and volume confirmation to validate momentum.