TECHM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.3

📈 Technical Analysis

• Chart Patterns: TECHM is trading close to its 52-week high, showing bullish strength but facing resistance near 1,770 ₹.
• Moving Averages: Current price (1,613 ₹) is above both 50 DMA (1,509 ₹) and 200 DMA (1,516 ₹), confirming an uptrend.
• RSI: At 71.2, RSI indicates overbought conditions, suggesting possible short-term pullback.
• MACD: Positive at 32.6, supporting bullish momentum.
• Bollinger Bands: Price near upper band, signaling potential consolidation or minor correction.
• Volume Trends: Current volume (17.8L) exceeds average weekly volume (11L), reflecting strong buying interest.

🎯 Momentum & Trade Zones

• Support Levels: 1,509 ₹ (50 DMA), 1,516 ₹ (200 DMA), and strong support at 1,450 ₹.
• Resistance Levels: 1,700–1,774 ₹ zone is a strong resistance.
• Entry Zone: Best entry on dips around 1,520–1,550 ₹.
• Exit Zone: Profit booking suggested near 1,700–1,750 ₹.
• Trend: Stock is trending upward but may consolidate near resistance.

✅ Positive

• Strong ROCE (18.2%) and ROE (14.0%).
• Healthy dividend yield of 2.81%.
• Low debt-to-equity ratio (0.05), ensuring financial stability.
• Price trading above both 50 & 200 DMA, confirming bullish trend.

⚠️ Limitation

• High P/E ratio (40.3) compared to industry average (26.4).
• Negative PEG ratio (-2.85), indicating weak earnings growth relative to valuation.
• Quarterly profit variation (-8.18%) shows declining earnings momentum.
• RSI in overbought zone, risk of short-term correction.

📉 Company Negative News

• Quarterly profits slightly declined (PAT down from 1,178 Cr. to 1,176 Cr.).
• FII holding reduced by -2.68%, showing reduced foreign investor confidence.

📊 Company Positive News

• DII holding increased by 2.51%, reflecting strong domestic institutional support.
• Stable PAT despite industry headwinds.
• Strong balance sheet with minimal debt.

🏭 Industry

• Industry P/E at 26.4, lower than company’s P/E, suggesting TECHM trades at premium valuation.
• IT sector resilient due to digital transformation demand, though margins remain under pressure.

📝 Conclusion

• TECHM is in a bullish uptrend with strong momentum but overbought signals suggest caution.
• Best strategy: accumulate on dips near 1,520–1,550 ₹ and book profits near 1,700–1,750 ₹.
• Medium-term outlook remains positive, but short-term consolidation is likely.