Neppolian Pillai of Modern Shares & Stock Brokers is of the view that one can buy TCS between Rs 515-460 and it can easily move up to Rs 540-570.
Pillai told CNBC-TV18, "IT right now is one of the weakest sectors. On the comparative chart it is doing classic road reversal pattern. Bottoms of that chart of 2003 and 2004; once the comparative chart fell through that bottom, every rally into that level is getting resisted, I think its been resisted atleast for 3-4 times now. So from an investment angle, unless and until this comparative chart really breaks out above this resistance level, one need not be looking at the sector from an investment standpoint albeit it can surely be looked at from trading point of view because as a house we feel that the market has adopted a trading nature rather than an investment nature."
He further added, "Within the sector TCS is one stock which is shaping out a lot better technically from a strength point of view even as compared to Infosys. It is getting better and better. It has moved into a slight weekly buy set up and that is the reason why we have picked up that. From a band between Rs 515 to Rs 460 which was the low for last week, I think in that Rs 50-55 band if we can buy, it can easily move up to Rs 540-570 albeit. It will be a rally within overall weakness for the sector but that is the best stand out stock as of now for me, so even one could go long in TCS."
