TCS: Rare Opportunity Below 200-Week Moving Average – Potential

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TCS has entered a historically significant zone. As visible in the weekly chart, the stock is currently trading below its 200-week moving average — a level that has only been breached during the 2008 global financial crisis.

📌 Key Observations:

Current price: ₹3,248.40

200-Week MA: ~₹3,626

MACD shows deep oversold territory – a typical sign of exhaustion in selling

Last time TCS traded this far below the 200W MA was during the 2008 crash — and the stock rebounded strongly afterward.

💡 What’s Supporting a Bullish Case?

US Tariff Pause: With Trump pausing tariff escalation, there's reduced uncertainty in global trade.

Rate Cut Prospects: The US Fed is expected to reduce interest rates soon, which could boost enterprise spending – a major tailwind for IT exporters like TCS.



📈 Growth Potential: If historical patterns repeat and macro factors align, TCS could see a 20–30% upside from current levels, targeting the ₹3,900–₹4,200 zone in the medium term.

🎯 Investment Rationale: This may be a rare opportunity to accumulate a quality stock like TCS at multi-year support levels, backed by strong fundamentals and favorable external cues.

🛒 Verdict: Good Buy Zone for Long-Term Investors

🔍 Disclaimer: I currently hold TCS in my portfolio. This post is for informational purposes only and not a recommendation to buy or sell. Please do your own research or consult a financial advisor before investing.

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