On 29-10-2024, the stock price of Tata Consultancy Services (TCS) witnessed a slight decline, dropping by -0.47%. It opened at ₹4090.05 and closed at ₹4074. Throughout the trading session, the stock reached a high of ₹4101 and a low of ₹4059.55. As of 1:00 PM, TCS shares were trading at ₹4074, reflecting the mentioned dip. Meanwhile, the Sensex was trading at ₹80006.67 without any change.
| Table of Contents |
|---|
| Technical Analysis |
| Key Price Levels |
| Volume Analysis |
| Fundamental Analysis |
| Shareholding Pattern |
| Market Comparison |
| Conclusion |
| FAQ |
Technical Analysis
From a technical analysis standpoint, TCS stock is positioned above the 5,300 days SMA but is trading below the 10, 20, 50, and 100 days SMA. This indicates that while the stock is performing better than the long-term average, it is still underperforming when compared to short-term benchmarks. Traders expect support at the 5,300 days SMA while facing resistance at the shorter SMAs.
Key Price Levels
Key resistance levels for TCS shares on a daily timeframe are positioned at ₹4133.7, ₹4175.35, and ₹4216.7. Conversely, the stock has significant support levels at ₹4050.7, ₹4009.35, and ₹3967.7. These levels are critical as they can influence future price movements and demonstrate where strong buying or selling interest might occur.
Volume Analysis
As of 1 PM, the volume traded for TCS on both NSE and BSE was recorded at nearly -58.99% lower than the previous trading session’s volume. Analyzing volume is crucial, as it indicates the strength of price movements. Positive price momentum coupled with high volume suggests a sustainable increase, whereas negative price movements with elevated volume can signal further declines.
Fundamental Analysis
From a fundamental perspective, TCS showcases a notable Return on Equity (ROE) of 50.75% and Return on Assets (ROA) of 31.78%. The stock currently holds a Price-to-Earnings (P/E) ratio of 31.27 and a Price-to-Book (P/B) ratio of 14.58. Analysts forecast a median 1-year upside of 11.76%, projecting a target price of ₹4553 for TCS shares., which reflects optimistic sentiment about the company’s future performance.
Shareholding Pattern
The latest filings for the September quarter reveal that TCS holds a 0.00% promoter holding, a 5.96% mutual fund holding, and a 12.66% Foreign Institutional Investor (FII) holding. This distribution of shareholding provides insights into the company’s investor base and their confidence levels regarding TCS’s stock performance, particularly in comparison to the broader market trends.
Market Comparison
In the context of market performance, TCS’s peers — including Infosys, HCL Technologies, LTI, and Tech Mahindra — displayed mixed results on the same day. The benchmark indices, Nifty and Sensex, reflected slight fluctuations, with Nifty experiencing a decrease of -0.16%, while Sensex remained unchanged at 0%.
Conclusion
The recent decline of TCS stock by -0.47% to ₹4074 was observed amid broader market dynamics. Nevertheless, analysts remain optimistic, with projections indicating an 11.76% potential upside, highlighting a target price of ₹4553. This outlook underlines the resilience of TCS in the tech sector, especially given its solid fundamentals and technical indicators.
FAQ
- What factors influence TCS stock prices?
- How does TCS compare with its competitors?
- What is the significance of moving averages in stock analysis?
Factors such as company performance, market dynamics, investor sentiment, and broader economic trends significantly influence TCS stock prices.
Though TCS faced a minor dip recently, its solid fundamental metrics suggest a strong competitive position within the IT sector compared to peers like Infosys and HCL Technologies.
Moving averages help investors identify trends, potential support and resistance levels, and the overall momentum of a stock, aiding in making informed trading decisions.
