Tata Consultancy Services Limited (TCS) Stock - Complete Technical Analysis - Sep 03, 2024

TCS Technical Analysis Key Support

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Let's dive into the technical analysis of Tata Consultancy Services Limited, or TCS. The stock is currently trading at 4,512, and today's candle formation is a Spinning Top, indicating market indecision. The current trend shows a strong support level around 4,245, identified from the Classic Pivot S1, which could act as a safety net if the price declines. On the resistance side, 4,727, derived from the Classic Pivot R1, could pose an obstacle to upward momentum.

Looking at moving averages, the stock is trading above its shorter-term averages, with the Exponential Moving Average of 10 periods at 4,493.2 and the Simple Moving Average of 10 periods at 4,512.2. This indicates a bullish trend in the short term. The stock is also trading above its Ichimoku Base Line at 4,351.38, suggesting a bullish sentiment. However, the stock's position relative to longer-term moving averages, like the 200-day SMA at 3,951.4, shows that while the long-term trend is positive, there could be volatility.

Indicators like the MACD and the Awesome Oscillator are showing bullish signals with the MACD level at 86.53 and the Awesome Oscillator at 161.17. The RSI is at 63.04, indicating that the stock is in a moderately overbought condition, which could suggest a consolidation or a minor pullback. The ADX at 33.13 reflects a strong trend but not overly strong, suggesting that the current trend could continue, but with some caution.

The Stochastic %K is high at 84.47, pointing towards a potential overbought situation, while the Stochastic RSI is in a neutral zone. With the ATR ranging from recent highs to lows, it shows the potential for price swings, emphasizing the importance of monitoring the support and resistance levels closely.

Overall, TCS shows a strong bullish trend in the short to medium term but keep an eye on the resistance levels and be cautious of potential pullbacks.