TCS Q2 results: Ready for the big move? Here's how to trade the IT stock on results day

Tata Group’s IT services arm Tata Consultancy Services (TCS) is set to announce its September-quarter results on October 8, with analysts expecting modest sequential revenue growth but stronger year-on-year numbers. The board is also expected to consider a second interim dividend.

According to the average of seven brokerages, TCS revenue is expected to grow around 13% year-on-year, while profit is likely to rise about 9%. On a sequential basis, constant-currency revenue growth is expected at around 0.5-0.6%.

ALSO READ: TCS Q2 Results Preview: Can the IT bellwether show enough growth to calm investors?

TCS share price movement

TCS shares settled at Rs 2,080.30 on the NSE on Wednesday, down 0.94% from the previous close of Rs 2,100, a day ahead of the results.

The stock has declined 35.54% so far this year, according to NSE data. The broader Nifty IT index has also fallen 27.28% during the same period.

With the stock near key technical levels ahead of the earnings announcement, analysts have outlined the support and resistance zones to watch on results day.

How to trade TCS on Q2 results day

Analysts broadly see the Rs 2,000-2,050 zone as crucial support for TCS, with Rs 2,117-2,120 emerging as the immediate resistance. Beyond the key technical levels, they will be watching revenue growth, margins, deal wins and management commentary on AI-led demand and discretionary spending.

Jigar S Patel, Senior Manager - Technical Research, Anand Rathi Share and Stock Brokers, said TCS is currently trading near a major support zone of Rs 2,000-1,970, which is likely to act as an important cushion on the downside.

"The daily RSI has formed a regular bullish divergence followed by a hidden bullish divergence during the period from March 2026 to September 2026, indicating improving underlying momentum despite the weakness in price action," Patel said.

The combination of a strong support zone and positive momentum signals, Patel believes, suggests the possibility of a recovery from current levels. Hence, as long as the Rs 2,000-1,970 support zone holds on a closing basis, he expects the stock to gradually move higher. On the upside, the counter can potentially move towards the Rs 2,300 level.

Patel added that a decisive closing below the mentioned support zone would weaken the setup and invalidate the bullish view. He therefore believes that Rs 1,970 remains the key level to watch.

Hitesh Rathi, Technical Analyst at Angel One, meanwhile, believes the Rs 2,117-2,120 band is an immediate resistance, followed by a stronger hurdle at the Rs 2,190 level.

"On the flip side, the Rs 2,030-2,025 band is an immediate support, followed by a sacrosanct support zone at Rs 2,020-1,980," Rathi said.

The technical structure of this IT heavyweight, Rathi believes, remains aligned to the downside. That said, the proximity of prices to a crucial support zone in the Rs 2,020-1,980 band offers a lucrative, risk-adjusted proposition to enter the stock from a medium-term trading perspective, with a stop loss placed below the strong support band, according to Rathi.

Sachin Gupta, VP – Research, Choice Broking, meanwhile, expects the TCS stock to remain volatile, while noting that the and the key factors to watch will be revenue growth, margins, deal wins and management commentary on AI-led demand and discretionary spending," he said.

If the results are encouraging and the stock manages to hold the Rs 2,000-Rs 2,050 support zone, a recovery towards Rs 2,250-Rs 2,450, Gupta believes, could be on the cards.

"On the other hand, a clear break below Rs 2,000 could lead to further weakness towards Rs 1,900-Rs 1,850. Hence, investors should avoid aggressive pre-result positions and wait for the results and subsequent price action for confirmation," Gupta said.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here