TCS shares hit three-year low, give up Rs 3,000 mark; here are fresh price targets

Shares of IT major Tata Consultancy Services (TCS) hit their three-year low in the afternoon session today amid the Trump administration's plan to hike fees for H-1B visas. This is the second worst crash on a year-to-date basis the IT stock has seen since the 2008 global financial crisis. The stock crashed 56% in 2008. This year, the IT stock is down 28.10% with investors losing Rs 4.12 lakh crore.

TCS shares slipped for the fifth straight session and gave up the key Rs 3,000 mark today to hit a low of Rs 2,959 on BSE. Market cap of the IT major fell to Rs 10.70 lakh crore.

The Nifty IT index too is down 20.27% this year as IT stock face negative sentiment arising out of the H1B visa issue and subdued quarterly earnings. On similar lines, BSE IT index has lost 21%.

Investor sentiment in IT stocks has taken a hit this year due to weak demand outlook and the disruptive influence of generative AI, coupled with subdued quarterly earnings performance.

Jigar S Patel from Anand Rathi said, "Support will be at Rs 2900 and resistance at Rs 3100 . A decisive move above the Rs 3100 level may trigger a further upside of Rs 3150. The expected trading range will be between Rs 2900 and Rs 3150 for the short-term."

Kunal Kamble, Sr. Technical Research Analyst at Bonanza said, "TCS has been the most corrected stock within the IT sector, and as the saying goes in technicals—momentum tends to persist. The stock is currently forming a series of lower lows and lower highs,highlighting a sustained negative trend. In today’s session, it broke down from an inverse Cup and Handle pattern, with the rise in volumes confirming strong seller dominance. The price is also trading below all major EMAs, reinforcing the bearish stance. On the momentum front, the RSI is trending lower, aligning with the price action.

From a technical perspective, the stock has scope to slip towards Rs 2880, and if this support fails to hold, further downside towards Rs 2600 cannot be ruled out. Any rise should be used as a selling opportunity,as long as the stock continues to trade below Rs 3200."

Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox is bearish on the outlook of the stock.

"Tata Consultancy Services (TCS) fell sharply, closing at Rs 2,957, marking a breakdown below the crucial Rs 2,990–3,000 support zone. This breach signals further weakness in the near term, as the stock has now slipped into a bearish structure on the chart.

Momentum indicators reinforce the negative outlook. The RSI has declined to 32, nearing oversold territory but still indicating persistent selling pressure. The ADX at 37 highlights a strengthening bearish trend, while negative directional movement remains dominant. The MACD histogram continues to print deep red bars, confirming sustained downside momentum.

Unless the stock reclaims the Rs 3,000 mark, TCS could extend losses toward Rs 2,880-Rs 2,750 in the near term. On the upside, resistance is now capped at Rs 3,020, with further hurdles at Rs 3,090- Rs 3,150. Traders are advised to stay cautious, while investors may wait for stability before considering fresh entries."