TECHM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | TECHM | Market Cap | 1,39,403 Cr. | Current Price | 1,423 ₹ | High / Low | 1,854 ₹ |
| Stock P/E | 34.5 | Book Value | 222 ₹ | Dividend Yield | 3.59 % | ROCE | 24.3 % |
| ROE | 18.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,440 ₹ | DMA 200 | 1,492 ₹ |
| Chg in FII Hold | 0.65 % | Chg in DII Hold | -0.45 % | PAT Qtr | 541 Cr. | PAT Prev Qtr | 1,139 Cr. |
| RSI | 48.9 | MACD | -4.92 | Volume | 6,88,932 | Avg Vol 1Wk | 34,87,818 |
| Low price | 1,304 ₹ | High price | 1,854 ₹ | PEG Ratio | 15.3 | Debt to equity | 0.07 |
| 52w Index | 21.6 % | Qtr Profit Var | -23.8 % | EPS | 39.4 ₹ | Industry PE | 20.7 |
📊 Chart Analysis: TECHM trades at ₹1,423, slightly below its 50 DMA (₹1,440) and 200 DMA (₹1,492), showing medium-term weakness. RSI at 48.9 indicates neutral momentum. MACD at -4.92 is bearish, suggesting downward pressure. Bollinger Bands place the price near the midline, pointing to consolidation. Current volume (6.9L) is far below the 1-week average (34.8L), reflecting weak participation.
📈 Momentum Signals: Short-term momentum is neutral to bearish. A move above ₹1,450 could trigger upside, while a drop below ₹1,400 risks further decline.
💡 Entry Zone: ₹1,380–₹1,420 (support near recent lows and 50 DMA).
🚪 Exit Zone: ₹1,480–₹1,520 (resistance near 200 DMA and upper trendline).
🔎 Trend Status: The stock is consolidating with bearish bias after falling from its 52-week high of ₹1,854.
Positive
- 📌 Strong ROCE of 24.3% and ROE of 18.3% indicate healthy returns.
- 📌 Dividend yield of 3.59% provides steady income to shareholders.
- 📌 Low debt-to-equity ratio (0.07) shows financial stability.
Limitation
- ⚠️ EPS growth slowing, PEG ratio at 15.3 suggests expensive valuation.
- ⚠️ PAT dropped sharply from ₹1,139 Cr. to ₹541 Cr. (-23.8% variation).
- ⚠️ Price below both 50 DMA and 200 DMA indicates weakness.
Company Negative News
- ❌ Quarterly profit decline highlights margin pressure.
- ❌ Weak trading volumes suggest reduced investor interest.
Company Positive News
- ✅ FII holding increased (+0.65%), showing foreign investor confidence.
- ✅ Strong dividend payout supports shareholder value.
Industry
- 🌐 IT services sector remains competitive but faces global demand slowdown.
- 🌐 Industry PE at 20.7 is lower than TECHM’s PE (34.5), indicating relative overvaluation.
Conclusion
📌 TECHM is consolidating with bearish bias. Traders may consider entries near ₹1,380–₹1,420 and exits around ₹1,480–₹1,520. While fundamentals are stable with strong ROE and dividends, expensive valuation and declining profits make caution necessary for medium-term investors.
We could refine this further by mapping support and resistance zones, analyzing volume trends for confirmation, or diving deeper into MACD and RSI signals to validate momentum strength.