TCS - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 2.4

Here’s a detailed technical analysis of Tata Consultancy Services Ltd. (TCS)

📊 Trend Overview

Current Trend: Reversing to bearish

Price is below both 50-DMA (₹3,339) and 200-DMA (₹3,647) — strong bearish signal.

RSI (20.1) — deeply oversold, indicating potential short-term bounce but overall weakness.

MACD (-86.2) — strongly negative, confirming downward momentum.

Volume: Above average — selling pressure is active.

📈 Chart Patterns & Indicators

Moving Averages

Price < 50-DMA and 200-DMA → confirms downtrend.

Bollinger Bands

Price likely hugging lower band — suggests oversold condition and volatility.

Support Levels

₹3,041 (recent low)

₹3,000 – ₹3,025 (psychological and historical support)

Resistance Levels

₹3,339 (50-DMA)

₹3,647 (200-DMA)

₹3,800 – ₹3,900 (previous consolidation zone)

🔍 Momentum Signals

Short-Term Bias: Bearish with oversold bounce potential

RSI < 30 and MACD negative — strong bearish momentum.

Volume spike suggests capitulation or panic selling.

Volume Trend: Elevated — confirms active selling.

🎯 Entry & Exit Zones

Action Price Zone (₹) Rationale

Buy Entry ₹3,050 – ₹3,100 Oversold bounce zone

Exit Target ₹3,300 – ₹3,350 Resistance at 50-DMA

Stop Loss ₹3,000 Below key support

🧠 Summary

TCS is currently reversing into a bearish phase, with price action breaking below key moving averages and momentum indicators flashing red. RSI suggests the stock is oversold, which may trigger a short-term bounce, but the broader trend remains weak. Traders should be cautious and wait for confirmation of reversal or stabilization before initiating long positions.

Want to explore how this setup compares with Infosys or Wipro? I can help you map out sector-wide sentiment shifts too.

Edit in a page