TECHM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | TECHM | Market Cap | 1,44,380 Cr. | Current Price | 1,474 ₹ | High / Low | 1,854 ₹ |
| Stock P/E | 35.8 | Book Value | 222 ₹ | Dividend Yield | 3.05 % | ROCE | 24.3 % |
| ROE | 18.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,452 ₹ | DMA 200 | 1,503 ₹ |
| Chg in FII Hold | 0.65 % | Chg in DII Hold | -0.45 % | PAT Qtr | 541 Cr. | PAT Prev Qtr | 1,139 Cr. |
| RSI | 55.2 | MACD | 3.33 | Volume | 29,39,615 | Avg Vol 1Wk | 26,20,040 |
| Low price | 1,304 ₹ | High price | 1,854 ₹ | PEG Ratio | 15.8 | Debt to equity | 0.07 |
| 52w Index | 30.8 % | Qtr Profit Var | -23.8 % | EPS | 39.4 ₹ | Industry PE | 21.6 |
📈 Chart & Trend: TECHM is trading above its 50 DMA (1,452 ₹) but below the 200 DMA (1,503 ₹), showing short-term strength but medium-term resistance. RSI at 55.2 indicates neutral-to-positive momentum, while MACD at 3.33 remains bullish. Bollinger Bands are moderately tight, suggesting consolidation with potential breakout.
🔑 Momentum Signals: Current price (1,474 ₹) is holding above support at 1,452–1,460 ₹. Resistance levels are seen at 1,495 ₹ and 1,510 ₹. Volume (29.4L) is above the 1-week average (26.2L), showing healthy participation and confirming momentum.
🎯 Entry Zone: 1,452–1,460 ₹ near 50 DMA support.
💰 Exit Zone: 1,495 ₹ (partial profit) and 1,510 ₹ (full exit).
📊 Trend Status: Consolidating with bullish bias.
Positive
- Strong ROCE (24.3%) and ROE (18.3%) indicate profitability.
- Dividend yield at 3.05% supports shareholder returns.
- MACD positive crossover confirms short-term bullish momentum.
- Volume above average strengthens breakout potential.
Limitation
- Quarterly PAT dropped sharply (541 Cr. vs 1,139 Cr.).
- High P/E (35.8) compared to industry PE (21.6).
- PEG ratio at 15.8 reflects expensive valuation.
- Price still below 200 DMA, limiting medium-term upside.
Company Negative News
- Quarterly profit variation at -23.8% shows earnings pressure.
- DII holdings reduced (-0.45%).
Company Positive News
- FII holdings increased (+0.65%), showing institutional confidence.
- Stable dividend payout continues to attract investors.
Industry
- Industry PE at 21.6 indicates sector trading at moderate valuations.
- IT sector facing margin pressures but long-term demand remains strong.
Conclusion
TECHM is consolidating with bullish bias supported by MACD and strong volume. Entry near 1,452–1,460 ₹ is favorable with exits at 1,495–1,510 ₹. While fundamentals remain strong, high valuation and recent profit decline limit conviction. Best suited for short-term swing trades with cautious monitoring of earnings trend.