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TCS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | TCS | Market Cap | 8,83,211 Cr. | Current Price | 2,441 ₹ | High / Low | 3,710 ₹ |
| Stock P/E | 18.1 | Book Value | 235 ₹ | Dividend Yield | 2.46 % | ROCE | 78.4 % |
| ROE | 65.0 % | Face Value | 1.00 ₹ | DMA 50 | 2,777 ₹ | DMA 200 | 3,114 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.17 % | PAT Qtr | 12,684 Cr. | PAT Prev Qtr | 12,486 Cr. |
| RSI | 26.9 | MACD | -129 | Volume | 33,28,530 | Avg Vol 1Wk | 32,25,236 |
| Low price | 2,360 ₹ | High price | 3,710 ₹ | PEG Ratio | 2.27 | Debt to equity | 0.11 |
| 52w Index | 6.01 % | Qtr Profit Var | 7.20 % | EPS | 126 ₹ | Industry PE | 20.9 |
📊 Technical Analysis
- Chart Patterns: Stock has corrected sharply from highs of ₹3,710, currently near ₹2,441 with strong support at ₹2,360–₹2,400 and resistance around ₹2,770 (50 DMA).
- Moving Averages: Price (₹2,441) below both 50 DMA (₹2,777) and 200 DMA (₹3,114), confirming bearish trend.
- RSI: 26.9 — oversold zone, suggesting potential rebound.
- MACD: -129 — bearish crossover, momentum strongly negative.
- Bollinger Bands: Price near lower band, oversold condition may trigger short-term bounce.
- Volume Trends: Current volume (33.2 Lakh) slightly above 1-week average (32.2 Lakh), showing steady participation during correction.
📈 Momentum & Signals
- Short-term Momentum: Weak, with bearish bias but oversold signals hint at possible rebound.
- Entry Zone: ₹2,360–₹2,440 (support region).
- Exit Zone: ₹2,750–₹2,800 (resistance region).
- Trend Status: Reversing from uptrend to bearish consolidation.
✅ Positive
- Strong ROCE (78.4%) and ROE (65.0%), indicating excellent efficiency.
- Dividend yield at 2.46%, attractive for income investors.
- Quarterly PAT growth (₹12,684 Cr vs ₹12,486 Cr, +7.2%).
- EPS at ₹126, supported by profitability.
- Both FII (+0.04%) and DII (+0.17%) holdings increased.
⚠️ Limitation
- Stock P/E (18.1) slightly below industry average (20.9), but PEG ratio (2.27) shows stretched valuation relative to growth.
- Price below both 50 DMA and 200 DMA, confirming bearish trend.
- Weak 52-week performance (6.01%), underperforming peers.
📉 Company Negative News
- Stock has lost significant value from 52-week highs (₹3,710 to ₹2,441).
- Short-term technical weakness with MACD bearish crossover.
📈 Company Positive News
- Strong quarterly profit growth (+7.2%).
- High efficiency metrics (ROCE and ROE).
- Dividend yield of 2.46% provides steady returns.
💻 Industry
- IT services sector PE at 20.9, showing moderate valuations compared to TCS’s slightly lower P/E.
- Industry supported by global demand for digital transformation, cloud, and AI services.
🔎 Conclusion
- TCS is in a bearish consolidation phase, trading well below key moving averages.
- Oversold RSI and Bollinger Band signals suggest potential rebound near ₹2,360–₹2,440.
- Short-term traders can accumulate near support and exit around ₹2,750–₹2,800.
- Long-term investors may find value in strong fundamentals, but should be cautious of weak price momentum and stretched valuations.