Fundamentals, Technicals, Entry & Exit Levels
Investors are always looking for bluechip stocks in India that combine strong fundamentals with promising technical trends.
Today, weโll analyze Tata Consultancy Services (TCS) and Bajaj Finance โ two of Indiaโs most respected companies.
Weโll cover fundamental analysis, technical outlook, entry and exit levels.
๐ Tata Consultancy Services (TCS) โ Fundamental Analysis
Why TCS is a Strong Bluechip Stock
Debt-Free Balance Sheet โ TCS operates with negligible debt, making it financially robust.
High Return Ratios โ A consistent ROE above 45% and healthy ROCE showcase its efficiency.
Consistent Dividend Payout โ Attractive dividend yield adds long-term value for shareholders.
Global Presence โ With a strong client base across industries and geographies, TCS remains resilient.
Key Challenges for TCS
IT Sector Slowdown due to weak global demand.
Premium Valuation makes upside limited unless growth accelerates.
Currency & Regulatory Risks across US and Europe.
๐ TCS โ Technical Analysis
Support Levels: โน2,800 โ โน2,850
Resistance Levels: โน3,200 โ โน3,300
Indicators: RSI shows neutral momentum; MACD slightly bearish.
Trend View: Sideways consolidation with breakout potential above โน3,300.
Suggested Entry & Exit (TCS)
Entry Zone: Buy near โน2,800 โ โน2,850 for long-term accumulation.
Target / Exit: โน3,200 โ โน3,300. Stop-Loss: โน2,700.
๐ณ Bajaj Finance โ Fundamental Analysis
Why Bajaj Finance is a Growth Stock
Strong Market Position โ Indiaโs leading NBFC with diversified loan products.
High Growth Trajectory โ Expanding customer base in consumer credit and rural finance.
Proven Track Record โ Consistent profit growth and strong market leadership.
Long Runway Ahead โ Rising consumer spending supports NBFC growth.
Key Challenges for Bajaj Finance
Credit Risk โ Any rise in NPAs can impact earnings.
Interest Rate Sensitivity โ Borrowing costs and RBI regulations influence margins.
Valuation Concerns โ Stock trades at premium multiples.
๐ Bajaj Finance โ Technical Analysis
Trend & Patterns
The stock is within an ascending channel โ series of higher highs and higher lows.
Recent behavior shows strength breaking above near resistance bands.
Momentum indicators (RSI, MACD) modestly positive โ not extremely overbought yet.
Support & Resistance Zones
Resistance Zones: ~ โน1,035 โ โน1,060 (near 52-week highs)
Support Zones: ~ โน950 โ โน970 on short term; strong support near โน900 โ โน920 if deeper pullback happens The 50-day and 200-day moving averages are also key dynamic support levels.
Momentum / Breakout
Break above โน1,035 with volume
Target :โน1,060 โ โน1,100
Stop Loss: โนโ below โน1,000 support
Pattern: Ascending channel with higher highs and higher lows.
Momentum Indicators: RSI bullish; moving averages supportive.
Suggested Entry & Exit (Bajaj Finance)
๐ Recommendation
TCS is best suited for long-term, defensive investors who want stable returns and dividends. Bajaj Finance is ideal for growth-seeking investors looking for faster capital appreciation, but with higher risk. A balanced portfolio may include both, with a higher weightage to Bajaj Finance for growth and TCS for stability.
โ ๏ธ Disclaimer
This analysis is for educational purposes only and does not constitute investment advice or a stock recommendation. Investing in the stock market involves risks. Please consult your financial advisor before making investment decisions. Past performance is not a guarantee of future results.