TCS Share Price Outlook: Will Q2 Earnings Spark a Rebound?

Summary:
• TCS share price dips post-Q2 earnings. Explore key support levels, technical analysis, and potential rebound.

Tata Consultancy Services (NSE: TCS) recently released its Q2 FY24 earnings, which revealed a mixed performance. While revenues grew, the operating margins contracted slightly, creating uncertainty in the stock’s short-term trajectory.

Key Earnings Highlights

• Revenue: ₹64,259 crore, a 7.7% year-on-year growth.
• Net Profit: 5% YoY increase, but slightly below market expectations.
• Operating Margin: Declined to 24.1%, creating pressure on the stock.
• Order Book: Strong order bookings at $8.6 billion, reflecting solid demand.

Technical Chart Analysis

• Current Price: ₹4,036, experiencing a 1.07% drop today.
• Support Levels:
  • Immediate support at ₹4,048 – recent price action testing this zone.
  • Next key support at ₹3,777, which could be tested if selling pressure continues.
  • Further support at ₹3,596 if bearish momentum deepens.
• Resistance Levels:
  • Nearest resistance at ₹4,299, aligned with recent highs.
  • Major resistance at ₹4,432, aligning with earlier peaks.
• RSI (14): At 32.24, indicating oversold conditions and a possible short-term reversal.
• Moving Averages: Price trading below both the 50-day and 200-day moving averages, indicating a bearish trend.
• Candlestick Patterns: Bearish candles dominate, with potential for recovery if support holds.

TCS Post Earnings Outlook

TCS has faced pressure following its Q2 earnings report, with margins tightening and the stock testing key support levels. Yet, its strong order book and oversold RSI suggest a potential rebound could be on the cards. If the ₹4,048 support holds, we may see a recovery towards ₹4,299 in the coming sessions. However, if bearish momentum persists, prepare for further downside toward ₹3,777. Stay alert—TCS’s moves will likely be driven by both earnings sentiment and technical signals in the days ahead.