Current Overview of TCS Share Price
As of 12:00 PM on October 8, the share price of Tata Consultancy Services (TCS) stands at ₹4219.45, reflecting a decline of 1.24% from the previous closing price. In contrast, the Sensex shows a positive trend, trading at ₹81443.38, up by 0.49%. Throughout the trading day, TCS shares reached a high of ₹4272.85 and a low of ₹4205, indicating volatility in the stock’s performance.
Technical Analysis of TCS Stock
From a technical standpoint, TCS is currently positioned above the 100 and 300-day Simple Moving Averages (SMA) but below the 5, 10, 20, and 50-day SMAs. This situation suggests that the stock may encounter support at the longer-term SMAs, while facing resistance from the shorter-term SMAs. Traders should watch these levels closely as they can provide insights into potential price movements.
Pivotal Support and Resistance Levels
In addition to the SMAs, pivotal level analysis reveals significant resistance points at ₹4303.93, ₹4334.52, and ₹4371.78. Conversely, key support levels are identified at ₹4236.08, ₹4198.82, and ₹4168.23, which can act as crucial benchmarks for traders when making investment decisions.
Market Sentiment and Performance
Overall market sentiment indicates that TCS is experiencing signs of a potential reversal following a recent uptrend, according to Mint technical analysis. This makes it essential for investors to remain vigilant and assess the stock’s performance against its industry peers.
Fundamental Analysis Insights
On the fundamental side, TCS boasts a robust Return on Equity (ROE) of 50.75%, which indicates efficient use of shareholder funds to generate profits. The price-to-earnings (P/E) ratio currently stands at 33.14, while the price-to-book (P/B) ratio is at 16.76, suggesting that the stock is trading at a premium compared to its book value.
Future Projections for TCS Shares
Analysts forecast a median 1-year upside potential of approximately 6.86%, estimating a target price of ₹4509.00. This projection reflects optimism about TCS’s performance and growth prospects in the upcoming year.
Institutional Holdings
Examining TCS’s institutional ownership, the company maintains a promoter holding of 71.77%, with mutual fund (MF) holdings at 6.13%, and foreign institutional investor (FII) holdings at 12.35%, based on June quarter filings. Notably, MF holdings have increased from 5.98% in March to 6.13% by June, while FII holdings have slightly decreased from 12.70% to 12.35% in the same period.
Comparative Performance with Peers
TCS’s share price is currently down by 1.24%, while its industry peers exhibit mixed performance. Companies like Infosys, HCL Technologies, and Tech Mahindra are experiencing declines today, whereas LTI Mindtree shows positive movement. However, both benchmark indices, Nifty and Sensex, are trading higher by 0.67% and 0.49%, respectively, reinforcing the optimistic market climate despite individual stock performances.
