TECHM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | TECHM | Market Cap | 1,68,232 Cr. | Current Price | 1,717 ₹ | High / Low | 1,777 ₹ |
| Stock P/E | 40.0 | Book Value | 221 ₹ | Dividend Yield | 2.62 % | ROCE | 18.2 % |
| ROE | 14.0 % | Face Value | 5.00 ₹ | DMA 50 | 1,616 ₹ | DMA 200 | 1,550 ₹ |
| Chg in FII Hold | -2.66 % | Chg in DII Hold | 3.15 % | PAT Qtr | 1,139 Cr. | PAT Prev Qtr | 1,176 Cr. |
| RSI | 60.2 | MACD | 43.1 | Volume | 6,83,442 | Avg Vol 1Wk | 19,97,524 |
| Low price | 1,209 ₹ | High price | 1,777 ₹ | PEG Ratio | -2.83 | Debt to equity | 0.05 |
| 52w Index | 89.5 % | Qtr Profit Var | 32.7 % | EPS | 41.1 ₹ | Industry PE | 23.9 |
📊 Chart Patterns: TECHM is trading close to its 52-week high (1,777 ₹), showing strong upward momentum. The price is comfortably above both 50 DMA (1,616 ₹) and 200 DMA (1,550 ₹), confirming a bullish trend.
📈 Moving Averages: Golden crossover with 50 DMA above 200 DMA. Current price (1,717 ₹) is well above both averages, reinforcing bullish sentiment.
📉 RSI: At 60.2, RSI indicates moderate strength, leaning towards bullish but not yet overbought.
📈 MACD: Positive at 43.1, showing strong bullish divergence and momentum continuation.
📊 Bollinger Bands: Price is near the upper band, suggesting strong buying interest but also caution for possible short-term pullback.
📊 Volume Trends: Current volume (6.8 lakh) is lower than average weekly volume (19.9 lakh), indicating reduced participation. However, price strength suggests institutional support.
📌 Momentum Signals: Short-term momentum is bullish. Breakout above 1,777 ₹ could trigger fresh highs, while support lies around 1,616–1,620 ₹.
🎯 Entry Zone: 1,650–1,680 ₹ (near 50 DMA support).
🎯 Exit Zone: 1,770–1,800 ₹ (near resistance and 52-week high).
🔎 Trend Status: The stock is trending upward with strong bullish signals.
Positive
- Strong EPS of 41.1 ₹ with consistent profitability.
- Dividend yield of 2.62% adds investor appeal.
- Low debt-to-equity ratio (0.05) ensures financial stability.
- Quarterly profit variation shows resilience (32.7% improvement).
Limitation
- High P/E ratio (40.0) compared to industry PE (23.9) indicates overvaluation risk.
- Lower trading volume compared to average suggests limited retail participation.
- PEG ratio (-2.83) signals weak growth relative to valuation.
Company Negative News
- FII holdings decreased by -2.66%, showing reduced foreign investor confidence.
- Quarterly PAT slightly declined from 1,176 Cr. to 1,139 Cr.
Company Positive News
- DII holdings increased by 3.15%, reflecting strong domestic institutional support.
- Consistent dividend payouts enhance shareholder value.
Industry
- IT services sector remains robust with global demand for digital transformation.
- Industry PE at 23.9 suggests TECHM trades at a premium valuation compared to peers.
Conclusion
🚀 TECHM is in a strong uptrend, supported by bullish technical indicators and institutional backing. Short-term traders may enter around 1,650–1,680 ₹ with targets near 1,770–1,800 ₹. Long-term investors should be cautious of high valuations but can hold for continued sector growth and dividend stability.
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