TCS stock looks technically weak, stares at 13% downside risk; key levels

The longer-term chart suggests that the overall trend for TCS is likely to remain subdued as long as the stock trades below ₹3,450 levels; on the downside it can crack up to ₹2,655 levels.

Tata Consultancy Services (TCS) stock started Friday's trading session on a quiet note, but soon slipped 1.5 per cent to a low of ₹3,015, even as the IT bellwether beat analysts' expectations on the Q3 revenue front.  At 9:20 AM, TCS shares traded with a loss of 0.4 per cent at ₹3,049. In comparison, the Nifty IT index was up 0.2 per cent at, and the benchmark Nifty 50 edged 0.1 per cent higher at 25,215 levels.  On Thursday, October 9, after market hours TCS reported a 1.3 per cent year-on-year (YoY) rise in net profit at ₹12,075 crore for the quarter ended September 2025 as against ₹11,909 crore posted in Q2FY25.  The IT major, beat analysts' expectations on the revenue front, with a 2.4 per cent YoY increase at ₹65,799 crore for Q2FY26. According to Bloomberg estimates, analysts' expected revenue to be ₹65,267 crore, and net profit at ₹12,559 crore.  ALSO READ | TCS headcount drops to less than 600k due to restructuring and layoffs  Meanwhile, technically, TCS share price was seen testing the short-term moving averages i.e. the 20-Day Moving Average (20-DMA) and the 50-DMA at ₹3,031 and ₹3,053, respectively. Here's a detailed technical outlook on TCS stock price. 

TCS

Current Price: ₹3,049  Likely Target: ₹3,450 / ₹2,655  Upside Potential: 13.2%  Downside Risk: 13%  Support: ₹2,970; ₹2,870  Resistance: ₹3,170; ₹3,207; ₹3,270  TCS daily chart shows that the stock, if it manages to sustain above the short-term moving averages, can potentially attempt a pullback towards the 100-DMA, which stands at ₹3,207. Above which, an extended rally towards the 200-DMA at ₹3,450 levels cannot be ruled. 

 

 

  TCS has been trading below the 100-DMA since January 13, and below the longer-term 200-DMA since February 7.  The medium-term chart, however, warns that the key momentum oscillators are in favour of the bears. The stock is expected to face interim resistance around ₹3,170 and ₹3,270 levels. For the overall trend to turn favourable, TCS will need to break and trade consistently above ₹3,450 levels, suggests the chart.     Till such time, the upside rallies run the risk of getting sold-off. On the downside, the stock may test its 100-Month Moving Average (100-MMA), which stands at ₹2,655 - and implies a 13 per cent downside risk potential from here. Support for TCS can be anticipated around its 20-DMA at ₹2,970 and ₹2,870 levels.