Analysts caution TCS pullback may be short-lived; flag key levels to track

Hitesh Tailor, technical analyst at Choice Broking flags that the TCS stock trades below key EMAs on the daily and weekly charts, and expects strong resistance between ₹2,250-2,330 levels.

Disclaimer: Views and outlook shared on the stock/stocks belong to the respective analyst/brokerages and are not endorsed by Business Standard. Readers' discretion is advised. The share price of Tata Consultancy Services (TCS) rallied over 5 per cent to an intraday high of ₹2,184 on the NSE a day after the IT major beat analyst expectations on the Q2 earnings front. TCS reported a 14.9 per cent year-on-year (YoY) growth in Q2FY27 net profit at ₹13,884 crore, up from ₹12,075 crore in Q2FY26. Revenue from operation rose by 11.2 per cent YoY to ₹73,188 crore. According to Bloomberg estimates, revenue was expected at ₹73,108 crore and net profit at ₹13,786 crore. READ MORE Post Q2 results, analysts at Nomura and Motilal Oswal reiterated their Buy ratings on TCS stock, citing growth visibility from deal bookings and improving international demand. Here's what other brokerages said. READ MORE Back to the market, at 09:45 AM, TCS traded with a gain of 4.6 per cent at ₹2,172 on trades of around 37 lakh shares on the NSE. Despite Friday's rally, TCS stock, including most IT shares, has been a major underperformer in 2026, down nearly 32 per cent on a year-to-date (YTD) basis at current levels. The stock has dropped more than 50 per cent from its peak of ₹4,386 in August 2024. ALSO READ | IT sector defies US green card suspension worries to rally 3%; here's why Given this background, here's a technical view on TCS stock by analyst Choice Broking and Systematix Institutional Research. From a trend perspective, TCS stock continues to trade below key daily, weekly, and monthly Exponential Moving Averages (EMAs), highlights Hitesh Tailor, Technical Research Analyst at Choice Broking. 

 

 "The persistent downward slope of these weekly moving averages confirms underlying supply pressure and indicates that minor pullbacks are routinely met with selling interest," explains Tailor. The analyst believes that any short-term rebound is expected to encounter heavy overhead resistance between ₹2,250 and ₹2,330, where previous breakdown zones align with declining weekly EMAs. On the downside, Tailor sees the ₹2,000–₹2,020 zone as the immediate psychological and structural support. He cautions that a decisive weekly close below ₹2,000 would signal a severe technical breakdown, opening downside risks toward the ₹1,850 and ₹1,750 levels. Meanwhile, derivatives analyst point out that there was no fresh directional build-up ahead of the TCS Q2 result on Thursday. TCS futures open interest (OI) at 259.6 lakh shares, was down 0.4 lakh, and there was no fresh directional build, says Dharmesh Bhatt, Head-Derivatives Research at Systematix Institutional Research. "TCS Calls OI rose about 50 per cent in a day to 227 lakh. The biggest additions were 2,300 CE (+19.2 lakh) and 2,200 CE (+14.1 lakh), with premiums falling, which points to writing. Puts OI rose about 33 per cent to 138 lakh. PCR fell to 0.61 from 0.69. The put floor is 2,000 and 2,000 PE, with fresh writing at 2,000 to 2,080 Strikes," explains Bhatt. The analyst believes that a break above ₹2,150 can lift TCS share price to ₹2,200 levels, but cautions the existing futures & options positions doesn't support ₹2,250–2,300 view. Bhatt adds that a confirmation for the same would be a decline 2,100–2,200 Call OI or the stock closing above ₹2,150.