TCS Stock Under Pressure: SEBI Analyst Sees Relief Rally Only Above ₹3,300

Tata Consultancy Services (TCS) shares slipped about 1% on Monday as investors booked profits across the technology pack after last week's rally. IT stocks saw strong buying as Infosys unveiled its biggest-ever share buyback worth ₹18,000 crore at ₹1,800 per share last week. 

The sector is also in wait-and-watch mode ahead of the U.S. Federal Reserve's Sept.16–17 meeting, where a rate cut could shape future client spending trends.

Partnership With The Warehouse Group

In news developments, TCS announced a strategic deal with New Zealand's The Warehouse Group. 

The partnership will focus on modernising and consolidating platforms, reducing technology debt, and strengthening AI and data-led efficiencies across the retail value chain. It also includes workforce initiatives to upskill employees in digital and AI capabilities.

Technical Outlook 

SEBI-registered analyst Deepak Pal said TCS at ₹3,133 remains in a downtrend, making lower highs and lows and trading below all major moving averages. 

The relative strength index (RSI) at 38 remains bearish, moving average convergence divergence (MACD) is negative, and Parabolic SAR shows sellers still dominate, he noted. 

Pal added that TCS stock is consolidating between ₹3,050 and ₹3,250, with risks of a slide to ₹2,950–₹2,800 if support breaks. A breakout above ₹3,300 with volume could spark a relief rally towards ₹3,550–₹3,700.

Key Events To Watch

Pal flagged mixed drivers for sentiment around TCS. On the downside, the U.S. HIRE Act outsourcing tax proposal and recent layoffs pose risks. 

On the upside, the €550 million Tryg deal and Bengaluru lease expansion add revenue visibility and signal confidence in long-term growth.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'bullish' amid 'normal' message volume.

TCS' stock has declined 24.6% so far in 2025.

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