Tata Group's IT jewel under selling pressure, analysts on recovery chances
The IT stock was trading on a flat note at Rs 3136.10 on BSE in the current session.
- Aug 26, 2025,
- Updated Aug 26, 2025 2:18 PM IST
Shares of IT major Tata Consultancy Services (TCS) are under strong selling pressure. The Tata Group's IT stock is trading near its 52-week low of Rs 2,992.05 reached on August 4 this year. It has already fallen 32% from its 52-week high of Rs 4585.90 reached on September 2 last year. Meanwhile, TCS shares were trading on a flat note at Rs 3136.10 on BSE in the current session. TCS stock opened lower at Rs 3130. Market cap of the firm fell to Rs 11.35 lakh crore. Total 0.12 lakh shares changed hands amounting to a turnover of Rs 3.77 crore on BSE.
TCS stock has a one-year beta of 0.8, signaling low volatility during the period. In terms of technicals, the relative strength index (RSI) of TCS stood at 54, signaling it's trading neither in the overbought nor in the oversold zone.
TCS shares stand higher than the 5 day, 10 day, 20 day, 30 day but lower than the 50 day, 100 day, 150 day and 200 day moving averages.
Some analysts believe that the IT stock is likely to face weakness in the near term. On the other hand, a trend reversal is in offing, say others.
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox looks slightly bullish on the stock. "TCS is currently trading near a multi-year base, formed in the Rs 2,900–Rs 3,000 zone, which has acted as a strong support since 2022. The stock has tested this level multiple times over the past few years and has consistently managed to rebound, making it a crucial demand zone. The recent bounce from this base suggests accumulation and improving risk–reward dynamics. The RSI has turned up from oversold territory and is currently placed near 52, reflecting strengthening momentum. Price is also attempting to reclaim short-term EMAs, which, if sustained, could accelerate the move higher. From a medium-term perspective, as long as TCS holds above Rs 2,900, the bias remains positive, and the stock can gradually move toward Rs 3,365–Rs 3,515 levels. A decisive close below Rs 2,900 would negate the bullish setup and may lead to renewed weakness," he said.
Jigar S Patel from Anand Rathi said, "Support will be at Rs 3080 and resistance at Rs 3200. A decisive move above the Rs 3200 level may trigger a further upside of Rs 3250. The expected trading range will be between Rs 3050 and Rs 3250 in the short-term."
Gaurav Bissa from Incred Equities expects the stock to recover in the short term.
"TCS has witnessed bullish divergence in momentum indicators like RSI and MACD on daily charts, which are strong signals for reversal. TCS has formed a small base around 3000 and is currently trading near a short term hurdle. Traders can buy TCS for short term target of Rs 3300 with stoploss of Rs 3000," said Bissa.
Om Mehra, Technical Research Analyst, SAMCO Securities sees a recovery in the stock.
"TCS has started to signal a turnaround after enduring a prolonged corrective phase. The stock has been gradually recovering from its recent lows and is now holding above the 9-EMA and 20-EMA. A positive divergence has emerged, and RSI has now climbed to 54, signaling a return to the neutral-to-positive zone after weeks of weakness. The MACD has turned higher, supported by a series of green bars, reflecting that momentum is shifting in favour of buyers. The breakout from recent consolidation has been supported by a rise in volumes, adding weight to the ongoing recovery attempt. The stock is also attempting to move out of its short-term base, with the immediate support now placed near Rs 3,050, which coincides with the 20-EMA. The stock offers a favourable risk-reward setup, with dips toward the Rs 3,080–Rs 3,050 zone acting as accumulation opportunities. Upside potential remains open towards the Rs 3,360–Rs 3,420 band, with a stop loss placed at Rs 3,000 on a closing basis," Mehra said.
Osho Krishan from Angel One said, "TCS has undergone a substantial correction from its recent peaks and is currently approaching its 52-week low, reflecting extreme oversold conditions. In recent weeks, the stock has shown signs of stability and has successfully retested its 20-DEMA, which signifies a favorable development. Regarding support levels, the range of Rs 3040-Rs 3000 is anticipated to function as a critical support zone. On the other hand, several resistance levels are identified on the upside, spanning from Rs 3250 to the bearish gap between Rs 3320 and Rs 3350 in the near term."
Shares of IT major Tata Consultancy Services (TCS) are under strong selling pressure. The Tata Group's IT stock is trading near its 52-week low of Rs 2,992.05 reached on August 4 this year. It has already fallen 32% from its 52-week high of Rs 4585.90 reached on September 2 last year. Meanwhile, TCS shares were trading on a flat note at Rs 3136.10 on BSE in the current session. TCS stock opened lower at Rs 3130. Market cap of the firm fell to Rs 11.35 lakh crore. Total 0.12 lakh shares changed hands amounting to a turnover of Rs 3.77 crore on BSE.
TCS stock has a one-year beta of 0.8, signaling low volatility during the period. In terms of technicals, the relative strength index (RSI) of TCS stood at 54, signaling it's trading neither in the overbought nor in the oversold zone.
TCS shares stand higher than the 5 day, 10 day, 20 day, 30 day but lower than the 50 day, 100 day, 150 day and 200 day moving averages.
Some analysts believe that the IT stock is likely to face weakness in the near term. On the other hand, a trend reversal is in offing, say others.
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox looks slightly bullish on the stock. "TCS is currently trading near a multi-year base, formed in the Rs 2,900–Rs 3,000 zone, which has acted as a strong support since 2022. The stock has tested this level multiple times over the past few years and has consistently managed to rebound, making it a crucial demand zone. The recent bounce from this base suggests accumulation and improving risk–reward dynamics. The RSI has turned up from oversold territory and is currently placed near 52, reflecting strengthening momentum. Price is also attempting to reclaim short-term EMAs, which, if sustained, could accelerate the move higher. From a medium-term perspective, as long as TCS holds above Rs 2,900, the bias remains positive, and the stock can gradually move toward Rs 3,365–Rs 3,515 levels. A decisive close below Rs 2,900 would negate the bullish setup and may lead to renewed weakness," he said.
Jigar S Patel from Anand Rathi said, "Support will be at Rs 3080 and resistance at Rs 3200. A decisive move above the Rs 3200 level may trigger a further upside of Rs 3250. The expected trading range will be between Rs 3050 and Rs 3250 in the short-term."
Gaurav Bissa from Incred Equities expects the stock to recover in the short term.
"TCS has witnessed bullish divergence in momentum indicators like RSI and MACD on daily charts, which are strong signals for reversal. TCS has formed a small base around 3000 and is currently trading near a short term hurdle. Traders can buy TCS for short term target of Rs 3300 with stoploss of Rs 3000," said Bissa.
Om Mehra, Technical Research Analyst, SAMCO Securities sees a recovery in the stock.
"TCS has started to signal a turnaround after enduring a prolonged corrective phase. The stock has been gradually recovering from its recent lows and is now holding above the 9-EMA and 20-EMA. A positive divergence has emerged, and RSI has now climbed to 54, signaling a return to the neutral-to-positive zone after weeks of weakness. The MACD has turned higher, supported by a series of green bars, reflecting that momentum is shifting in favour of buyers. The breakout from recent consolidation has been supported by a rise in volumes, adding weight to the ongoing recovery attempt. The stock is also attempting to move out of its short-term base, with the immediate support now placed near Rs 3,050, which coincides with the 20-EMA. The stock offers a favourable risk-reward setup, with dips toward the Rs 3,080–Rs 3,050 zone acting as accumulation opportunities. Upside potential remains open towards the Rs 3,360–Rs 3,420 band, with a stop loss placed at Rs 3,000 on a closing basis," Mehra said.
Osho Krishan from Angel One said, "TCS has undergone a substantial correction from its recent peaks and is currently approaching its 52-week low, reflecting extreme oversold conditions. In recent weeks, the stock has shown signs of stability and has successfully retested its 20-DEMA, which signifies a favorable development. Regarding support levels, the range of Rs 3040-Rs 3000 is anticipated to function as a critical support zone. On the other hand, several resistance levels are identified on the upside, spanning from Rs 3250 to the bearish gap between Rs 3320 and Rs 3350 in the near term."