The important issue of modern communication is establishing secret communication while using public channel and is achieved by steganography. In this paper, we propose Coherent Steganographic Technique using Segmentation and Discrete Cosine Transform (CSSDCT). The cover image is divided into 8*8 blocks and DCT is applied on each block. The number of payload MSB bits is embedded into DCT coefficients of the cover image coherently based on the values of DCT coefficients. It is observed that the proposed algorithm has better PSNR, Security and capacity compared to the existing techniques.