TCS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | TCS | Market Cap | 8,38,185 Cr. | Current Price | 2,317 ₹ | High / Low | 3,545 ₹ |
| Stock P/E | 16.0 | Book Value | 234 ₹ | Dividend Yield | 2.76 % | ROCE | 76.7 % |
| ROE | 65.2 % | Face Value | 1.00 ₹ | DMA 50 | 2,473 ₹ | DMA 200 | 2,877 ₹ |
| Chg in FII Hold | -0.71 % | Chg in DII Hold | 0.53 % | PAT Qtr | 14,526 Cr. | PAT Prev Qtr | 12,684 Cr. |
| RSI | 39.2 | MACD | -51.7 | Volume | 35,08,052 | Avg Vol 1Wk | 48,97,252 |
| Low price | 2,206 ₹ | High price | 3,545 ₹ | PEG Ratio | 1.58 | Debt to equity | 0.11 |
| 52w Index | 8.28 % | Qtr Profit Var | 30.7 % | EPS | 136 ₹ | Industry PE | 20.7 |
📊 Chart Analysis: TCS is trading at ₹2,317, below both the 50 DMA (₹2,473) and 200 DMA (₹2,877), indicating short-term weakness. RSI at 39.2 suggests the stock is nearing oversold territory. MACD at -51.7 confirms bearish momentum. Bollinger Bands show price near the lower band, reflecting selling pressure. Current volume (35.0L) is below the 1-week average (48.9L), showing reduced participation.
📈 Momentum Signals: Short-term momentum is bearish, with RSI showing limited strength and MACD confirming weakness. A rebound is possible only if support levels hold.
💹 Support & Resistance: Strong support lies near ₹2,206 (recent low). Immediate resistance is at ₹2,473 (50 DMA) and ₹2,877 (200 DMA). Optimal entry zone: ₹2,280–₹2,320. Exit zone: ₹2,450–₹2,500.
🔄 Trend Status: The stock is currently consolidating downward with potential reversal signs if support near ₹2,206 holds.
Positive
- ✅ ROCE of 76.7% and ROE of 65.2% highlight exceptional efficiency.
- ✅ EPS of ₹136 supports valuation strength.
- ✅ Dividend yield of 2.76% provides steady returns.
- ✅ PAT improved sequentially from ₹12,684 Cr. to ₹14,526 Cr.
- ✅ DII holdings increased by 0.53%, showing domestic investor confidence.
Limitation
- ⚠️ Current price below both 50 DMA and 200 DMA, showing weak technical strength.
- ⚠️ PEG ratio of 1.58 suggests valuation is not cheap relative to growth.
- ⚠️ Volume significantly below average, reflecting weak participation.
Company Negative News
- 📉 FII holdings decreased by -0.71%, showing reduced foreign investor confidence.
- 📉 Stock trading at only 8.28% of its 52-week index, reflecting severe underperformance relative to highs.
Company Positive News
- 📈 Quarterly profit growth of 30.7% highlights strong operational performance.
- 📈 Domestic institutional investors increased holdings, signaling confidence.
Industry
- 💻 IT services sector trading at industry P/E of 20.7, slightly higher than TCS’s P/E of 16.0, suggesting relative undervaluation despite weak momentum.
- 💻 Sector supported by global demand for digital transformation, cloud services, and AI-driven solutions.
Conclusion
📌 TCS is consolidating downward, trading below key moving averages with bearish MACD and weak RSI. Entry around ₹2,280–₹2,320 with exit near ₹2,450–₹2,500 offers a cautious rebound opportunity. Fundamentals show exceptional efficiency, strong profits, and attractive dividend yield, but weak momentum, foreign investor outflows, and underperformance relative to the 52-week index are concerns. The stock may stabilize if support near ₹2,206 holds.
For broader context, you could explore a IT services sector outlook or compare TCS with peers through a valuation comparison.