TCS shares:Investors should stay put
Published On: Friday, July 9, 2021 | By: Team KnowMyStock
In today's(9th July 2021) session Shares of Tata Consultancy Services swung between gains and losses following its June quarter results which were lower than expectations. The scrip declined over 1 percent in early trade to Rs 3,211.85 on the BSE, however, it recouped losses to trade marginally in the green at Rs 3,271.05 around 10.40 am. Analysts largely hold bullish views on the stock although they are concerned about the valuations. Most expect TCS to bounce back following a blip in the Q1 earnings show. The technical charts signals for the stock in the days ahead are as below: Tata Consultancy Services (TCS) Likely target: Rs 3,700 and Rs 3,900 Upside potential: 8% and 15%
The overall price structure reflects an “ascending triangle pattern” for IT major TCS. The stock faces stiff resistance in the range of Rs 3,400 – Rs 3,300 per share, show daily charts. That said, a breakout above this level may result in a rally towards Rs 3,700 and then Rs 3,900 levels. The said breakout must possess strong volumes, which the stock is unable to attract currently.
On the downside, the chart formation is indicating support at Rs 3,100 levels from a short-term perspective. The medium-term outlook remains bullish as long as the stock holds positive momentum above the earlier breakout mark of Rs 2,800 level.
The counter is struggling to conquer the resistance range as the Relative Strength Index (RSI) shows negative divergence. That said, the price strength is not allowing selling pressure to suppress the upside bias.
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