⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TECHM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | TECHM | Market Cap | 1,35,761 Cr. | Current Price | 1,386 ₹ | High / Low | 1,854 ₹ |
| Stock P/E | 32.3 | Book Value | 221 ₹ | Dividend Yield | 3.25 % | ROCE | 18.2 % |
| ROE | 14.0 % | Face Value | 5.00 ₹ | DMA 50 | 1,475 ₹ | DMA 200 | 1,523 ₹ |
| Chg in FII Hold | -2.66 % | Chg in DII Hold | 3.15 % | PAT Qtr | 1,139 Cr. | PAT Prev Qtr | 1,176 Cr. |
| RSI | 42.2 | MACD | -54.6 | Volume | 30,64,704 | Avg Vol 1Wk | 22,29,827 |
| Low price | 1,209 ₹ | High price | 1,854 ₹ | PEG Ratio | -2.29 | Debt to equity | 0.05 |
| 52w Index | 27.4 % | Qtr Profit Var | 32.7 % | EPS | 41.1 ₹ | Industry PE | 20.9 |
📊 Technical Analysis
- Chart Patterns: Stock is trading near support at ₹1,209, resistance around ₹1,475–₹1,523. Weakness visible below long-term averages.
- Moving Averages: Current price (₹1,386) is below both 50 DMA (₹1,475) and 200 DMA (₹1,523), indicating bearish bias.
- RSI: 42.2 — neutral to slightly oversold, suggesting limited downside but weak momentum.
- MACD: -54.6 — bearish crossover, momentum still negative.
- Bollinger Bands: Price near lower band, potential short-term bounce possible.
- Volume Trends: Current volume (30.6L) above 1-week average (22.3L), showing increased activity at support levels.
📈 Momentum & Signals
- Short-term Momentum: Weak but stabilizing near support.
- Entry Zone: ₹1,320–₹1,360 (near support, risk-managed).
- Exit Zone: ₹1,475–₹1,523 (first resistance), ₹1,600 (major resistance).
- Trend Status: Consolidation with bearish undertone; reversal only above ₹1,475.
✅ Positive
- Strong ROE at 14% and ROCE at 18.2% indicate healthy returns.
- Dividend yield of 3.25% provides investor incentive.
- Quarterly profit variation improved by 32.7%, showing operational stability.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA, bearish technical setup.
- PEG ratio at -2.29 indicates growth concerns.
- FII holding decreased by -2.66%, showing reduced foreign investor confidence.
📰 Company Negative News
- Quarterly PAT slightly declined (₹1,139 Cr vs ₹1,176 Cr).
- Stock has corrected significantly from 52-week high of ₹1,854 to current ₹1,386.
🌟 Company Positive News
- Strong EPS at ₹41.1, reflecting profitability.
- DII holdings increased by 3.15%, showing domestic investor confidence.
- Low debt-to-equity ratio (0.05) indicates financial stability.
🏭 Industry
- Industry PE at 20.9, lower than company PE (32.3), suggesting TechM trades at a premium.
- IT services sector remains resilient with digital transformation demand.
🔎 Conclusion
- TECHM is consolidating near support with weak momentum.
- Short-term traders may consider entry near ₹1,320–₹1,360 with exit around ₹1,475–₹1,523.
- Long-term investors should weigh premium valuation against stable fundamentals and dividend yield.