TCS, Tata Technologies, Tata Elxsi shares log double-digit losses; can they recover in 2026?

Shares of Tata Group's information technology (IT) firms such as Tata Elxsi, Tata Technologies and TCS have clocked double digit losses this year. The weakness in the IT sector emanates from subdued quarterly earnings, a fall in discretionary spending by global clients, geopolitical tensions, and continous selling by foreign institutional investors (FIIs). 

While Tata Elxsi has lost 23%, Tata Technlogies shares have fallen 24.44% in 2025. Another Tata Group stock TCS is down 22.62% during the period.

The fall in the IT stocks is also reflected in the correction in IT indices on bourses. BSE IT index has slipped 15.15% in 2025. Similarly, the Nifty IT index has lost 13% in 2025 

Tata Elxsi 

Meanwhile, Tata Elxsi shares were trading marginally higher at Rs 5173 today. Total 0.13 lakh shares of the firm changed hands amounting to a turnover of Rs 6.90 crore

In terms of technicals, the Tata Group stock is neither oversold nor overbought on charts with a RSI of 37.5. Tata Elxsi shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The large cap stock hit a 52 week high of Rs 7474 on December 5, 2024 and fell to a 52 week low of Rs 4601 on April 7, 2025. 

Shitij Gandhi, AVP – Equity Technical Research at SMC Global Securities said, "Tata Elxsi has been quietly sliding lower for weeks, forming a descending triangle, which shows sellers are still in control. The stock is now sitting right on its key support level of 5100 — a zone it has tested several times. This makes the next move crucial. A breakdown below this base could open the door to more downside towards 4950, while a bounce from here will only matter if it manages to break above the falling trendline resistance which is placed around 5400 levels. Until then, the trend remains weak and cautious trading is advise

Sebi registered independent analyst Abhijeet said, "Tata Elxsi stock price is bearish on the Daily charts with strong resistance at Rs 5261. A Daily close below support of Rs 5120 could lead to a target of Rs 4806 in the near term."

Tata Technologies 

Tata Technologies shares were trading on a flat note at Rs 672.95 today. Total 0.39 lakh shares of the firm changed hands amounting to a turnover of Rs 2.66 crore on BSE. In terms of technicals, the Tata Group stock is neither oversold nor overbought on charts with a RSI of 46.1. Tata Technologies shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The IT stock hit a 52 week high of Rs 973 on December 3, 2024 and fell to a 52 week low of Rs 595.05 on April 7, 2025. 

Shitij Gandhi, AVP – Equity Technical Research at SMC Global Securities said, "The stock has been moving in a tight symmetrical triangle, showing that buyers and sellers are in a wait-and-watch mode. Prices are getting squeezed between falling highs and rising lows, hinting that a big move may be around the corner. Since the major moving averages are still above the price, the broader trend remains weak. A strong breakout above the Rs 700 levels could spark a recovery, while a slip below the lower trend line around Rs 660 level may pull the stock further down towards Rs 635 level as well."

Amruta Shinde, Research Analyst, Choice Broking said, "Tata Tech is currently trading around Rs 675.20 and continues to display a broader downtrend on the weekly chart. After a prolonged decline, the stock is now consolidating within a sideways range, indicating temporary pause but no clear reversal yet. On the upside, major resistance is placed near Rs 740, followed by Rs 800 — both levels where selling pressure has previously emerged, making them crucial hurdles for any meaningful recovery. On the downside, strong support lies in the Rs 640– Rs 660 zone, where accumulation has been observed; however, a breakdown below this range could trigger an extended decline. Technically, the stock remains weak as it trades below the key 20, 50, and 100-day EMAs, reinforcing the bearish structure. RSI is also moving in a downtrend, reflecting sustained weakness in momentum. Given the prevailing trend, short-term traders should avoid fresh buying and wait for a confirmed breakout above Rs 740– Rs 800 with strong volumes before considering long positions."

Sebi registered independent analyst Abhijeet said, "Tata Technologies stock price is slightly bullish on the Daily charts with strong support at Rs 667. A Daily close above resistance of Rs 695 could lead to a target of Rs 744 in the near term."

TCS 

Shares of TCS rose nearly 2% to Rs 3195 in the afternoon trade against the previous close of Rs 3,135.60 on BSE. Market cap of the firm stood at Rs 11.55 lakh crore. The IT stock fell to a 52-week low of Rs 2867.55 on October 1, 2025 and rose to a 52 week high of Rs 4494 on December 10, 2024. 

In terms of technicals, the Tata Group stock is neither oversold nor overbought on charts with a RSI of 41.9. TCS shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but lower than the 150 day and 200 day moving averages.

Amruta Shinde from Choice Broking said, "TCS has been attempting to stabilise after a prolonged downtrend, with the stock currently trading around Rs 3,136, showing mild upward momentum. The price is now hovering close to key short-term moving averages, reflecting early signs of accumulation after months of weakness. The stock is trading around the 20-day EMA and just above the 50-day EMA, indicating improving short-term sentiment. However, the 100-day EMA and the 200-day EMA remain positioned above the current market price, suggesting that the broader trend is still gradually recovering but not yet fully bullish. Over the past several weeks, the stock has been consolidating in a tighter range, forming a potential base. Candlestick structure reflects reduced selling pressure and increasing stability, hinting at a possible trend reversal attempt if buying strength sustains.

On the downside, immediate support lies near Rs 3,085–3,015, where the 50-EMA and prior demand zone align. A breakdown below this zone may lead to renewed selling pressure. As long as the stock holds above the 50-EMA, the developing structure remains constructive for further upside. On the upside, resistance is visible near Rs 3,170, followed by a stronger barrier at the 200-day EMA around Rs 3,311. A decisive breakout above 3,311 would signal a meaningful shift in trend and open the doors for a broader recovery phase."

Sebi registered independent analyst Abhijeet said, "TCS stock price is bearish on the Daily charts with strong resistance at Rs 3179. A Daily close below the support of Rs 3106 could lead to a target of Rs 2943 in the near term."