TCS Shares Plunge Over 8%: Examining the Worst Single-Day Decline Since the Covid-Era Rout
Just a day after a notable rebound in technology stocks, Tata Consultancy Services (TCS) experienced a significant downturn on Wednesday, with its shares plummeting over 8%. This marked the steepest single-day decline for the stock since the market crash triggered by the Covid-19 pandemic in March 2020. The sell-off erased recent gains and contributed to broader losses in the IT sector, impacting the benchmark Sensex and Nifty indices.
Shares of TCS closed at Rs 2,241.70 on the National Stock Exchange, down 8.39%. This decline followed a strong performance in the preceding sessions, where the Nifty IT index had surged more than 4% on Tuesday, its largest single-day gain since May 2026. TCS had gained approximately 8% in the two sessions leading up to Tuesday’s close of Rs 2,446.90, but Wednesday’s drop wiped out those gains in a single trading day.
Resistance Triggers Sharp Reversal
Market analysts noted that TCS faced strong resistance near a critical technical zone, prompting profit-taking and renewed selling pressure. Sudeep Shah, Head of Technical Research and Derivatives Research at SBI Securities, indicated that the stock encountered resistance around its 100-day exponential moving average (EMA) zone of Rs 2,600–2,605. He stated that momentum indicators have weakened, with the Relative Strength Index (RSI) declining after nearing the 60 mark, suggesting a loss of bullish momentum.
Shah also pointed out that TCS has slipped below the midline of the Bollinger Band, a level often viewed as significant support. He identified the Rs 2,210-2,200 zone as a critical support area for the stock, warning that a breach below these levels could lead to further downside pressure.
What Are Analysts Watching Now?
The rapid reversal of the recent rally has raised concerns about the sustainability of any near-term recovery. Harshal Dasani, Business Head at INVasset PMS, remarked that the latest price movements indicate that the earlier rebound may have been temporary rather than the start of a sustained uptrend. He characterized the 9% fall following a 6.53% rebound as a “dead cat bounce,” suggesting that the market is reassessing the low-growth IT model rather than reacting to a single negative headline.
Dasani advised investors to monitor the stock’s 52-week low near Rs 2,206 closely. He cautioned that a decisive close below this level could further weaken the technical structure, as the stock has not established a solid support base beneath that zone. On the upside, he noted that the Rs 2,400-Rs 2,450 range is likely to serve as a significant resistance zone.
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