TCS shares in a free fall, close lower for 7 sessions; should you 'sell on rise'?
TCS stock crash: TCS closed 0.13% lower at Rs 2,896.40. Market cap of TCS stood at Rs 10.47 lakh crore on Monday.
- Sep 30, 2025,
- Updated Sep 30, 2025 9:10 AM IST
Shares of IT major Tata Consultancy Services (TCS) are in a free fall. The large cap IT stock has closed lower for seven straight sessions. The IT stock has seen weak sentiment in the last one year due to tepid demand outlook, Trump administration's plan to hike fees for H-1B visas and the disruptive influence of generative AI, coupled with subdued quarterly earnings performance.
In the previous session, TCS closed 0.13% lower at Rs 2,896.40. Market cap of TCS stood at Rs 10.47 lakh crore on Monday. Investors have lost Rs 4.34 lakh crore this year in the IT stock.
The reduction in the market cap amounts to a fall of 29.58% in the stock this year. The stock is down 33% in a year.
In terms of technicals, its RSI has fallen to 28.6, signalling the stock is trading near the oversold zone.
In terms of simple moving averages, the stock is trading below all short term and long term ranges, signaling the negative trend in the Sensex component.
Analysts are bearish on the outlook of the stock in the near term.
Gaurav Bissa, Senior Vice President at Incred Equities said, "TCS has been forming lower highs and lower lows since the last one year. It, along with the sector has been underperforming with multiple supports being broken. It has witnessed a fresh swing breakdown below 2950 which can push it lower by 5-7 percent."
Hardik Matalia, Derivative Analyst, Choice Broking is bearish on the outlook of the stock.
"The stock has been forming a clear pattern of lower highs and lower lows, reinforcing its weak structure. After a brief phase of sideways consolidation at lower levels, TCS has once again breached its range on the downside, thereby resuming its bearish trajectory. On the technical front, the stock continues to trade below all its key moving averages, reflecting persistent weakness and a lack of buying momentum. The RSI stands at 28.8, trending downward after reversing from the 58 zone, which highlights increasing selling pressure and the continuation of bearish sentiment," added Matalia.
"In the near term, short-term traders should continue to follow a 'sell on rise' strategy as long as the stock remains below Rs 3,500. However, those looking for short-term buying opportunities may participate once a reversal is seen, with Rs 3,500 acting as the immediate upside target. Fresh buying interest should only be considered if the stock manages to sustain above the Rs 3,500 mark, which would also confirm a potential trend reversal," added Matalia.
Shitij Gandhi, Sr. Research Analyst (Technicals), SMC Global Securities said, "The fall came after a few sessions of sideways consolidation, suggesting renewed selling pressure at higher levels. From a technical standpoint, the stock has broken below the consolidation zone signalling weakening bullish momentum. The secondary oscillators has entered into a bearish crossover, confirming short-term downside risks.
On the downside, Rs 2,900–2,850 serves as an important support zone and a breach below this may open the door for further declines towards Rs 2,820–2,800. Overall, the trend for TCS in the near term remains cautiously bearish, with key supports under watch. Traders should adopt a sell-on-rise strategy."
Shares of IT major Tata Consultancy Services (TCS) are in a free fall. The large cap IT stock has closed lower for seven straight sessions. The IT stock has seen weak sentiment in the last one year due to tepid demand outlook, Trump administration's plan to hike fees for H-1B visas and the disruptive influence of generative AI, coupled with subdued quarterly earnings performance.
In the previous session, TCS closed 0.13% lower at Rs 2,896.40. Market cap of TCS stood at Rs 10.47 lakh crore on Monday. Investors have lost Rs 4.34 lakh crore this year in the IT stock.
The reduction in the market cap amounts to a fall of 29.58% in the stock this year. The stock is down 33% in a year.
In terms of technicals, its RSI has fallen to 28.6, signalling the stock is trading near the oversold zone.
In terms of simple moving averages, the stock is trading below all short term and long term ranges, signaling the negative trend in the Sensex component.
Analysts are bearish on the outlook of the stock in the near term.
Gaurav Bissa, Senior Vice President at Incred Equities said, "TCS has been forming lower highs and lower lows since the last one year. It, along with the sector has been underperforming with multiple supports being broken. It has witnessed a fresh swing breakdown below 2950 which can push it lower by 5-7 percent."
Hardik Matalia, Derivative Analyst, Choice Broking is bearish on the outlook of the stock.
"The stock has been forming a clear pattern of lower highs and lower lows, reinforcing its weak structure. After a brief phase of sideways consolidation at lower levels, TCS has once again breached its range on the downside, thereby resuming its bearish trajectory. On the technical front, the stock continues to trade below all its key moving averages, reflecting persistent weakness and a lack of buying momentum. The RSI stands at 28.8, trending downward after reversing from the 58 zone, which highlights increasing selling pressure and the continuation of bearish sentiment," added Matalia.
"In the near term, short-term traders should continue to follow a 'sell on rise' strategy as long as the stock remains below Rs 3,500. However, those looking for short-term buying opportunities may participate once a reversal is seen, with Rs 3,500 acting as the immediate upside target. Fresh buying interest should only be considered if the stock manages to sustain above the Rs 3,500 mark, which would also confirm a potential trend reversal," added Matalia.
Shitij Gandhi, Sr. Research Analyst (Technicals), SMC Global Securities said, "The fall came after a few sessions of sideways consolidation, suggesting renewed selling pressure at higher levels. From a technical standpoint, the stock has broken below the consolidation zone signalling weakening bullish momentum. The secondary oscillators has entered into a bearish crossover, confirming short-term downside risks.
On the downside, Rs 2,900–2,850 serves as an important support zone and a breach below this may open the door for further declines towards Rs 2,820–2,800. Overall, the trend for TCS in the near term remains cautiously bearish, with key supports under watch. Traders should adopt a sell-on-rise strategy."