TCS Under Pressure: US Action Adds Fresh Risk

Tata Consultancy Services delivered a mixed Q2 FY27 performance. Revenue rose 1.3% QoQ to ₹73,188 crore, while net profit increased 4% QoQ to ₹13,884 crore. The biggest positive was AI, with annualised AI revenue jumping to $3.1 billion, crossing 10% of total revenue. However, deal wins at $9.6 billion remained below the $10 billion level seen a year ago. The bigger concern came from the US. The US Department of Labor has suspended TCS, Infosys, Wipro, HCL Technologies, Cognizant and Capgemini from the PERM programme, an important step in the US employment-based Green Card process. This is not an H-1B suspension, but it adds another layer of uncertainty for Indian IT companies. Technically, TCS remains weak. The stock is trading around ₹2,076 and below the 10-EMA at ₹2,091, 20-EMA at ₹2,147, 50-EMA at ₹2,198 and 100-SMA around ₹2,227. RSI near 38 and a negative MACD indicate that momentum is still favouring sellers. The crucial support zone is ₹2,000–1,983. If this zone holds, a relief bounce towards ₹2,125–2,150 cannot be ruled out. A sustained breakout above ₹2,150 would improve the technical setup and could take the stock towards ₹2,200–2,230. However, a decisive breakdown below ₹1,983 could extend the existing downtrend. My view: AI growth remains encouraging, but the US development combined with weak technical structure keeps TCS in a wait-and-watch zone. ₹1,983 and ₹2,150 are the two levels that could decide the next major move. Disclosure: This is my personal market view based on publicly available information and technical analysis. It is not a recommendation to buy or sell securities.