Sumeet Bagadia
With the above expectation quarterly result, Tata Consultancy Services made an all-time high along with accentuated buying activity and it seems that it can be continued for near future as momentum dynamics has shifted to a new zone and the stock has reached to its unexplored territory.
Equally, the stock has given a breakout of its upper band of Flag formation which is normally considered as a continuation formation on a quarterly chart which suggests a further upside movement in the counter. Even quarterly RSI which is trading at 81.36 level with a positive crossover, has a further room to move ahead if we have a look of its past movement which went up to the level of 87.87 level.
As per the moving average concept the stock has been trading in a strong uptrend as the stock is well placed above its 21 and 50 Months Moving Average and is giving a complete dignity to it whenever the stock retrace its upward jog.
Even on a daily chart, the stock has given a breakout of its Flag formation but on a smaller time scale likewise, a Quarterly Flag Formation Breakout Part -2, and may repeat the history with the bumper leaping in the prices. However, a daily RSI’s reading is in an overbought zone which points out a concern for a supply-side which may hit the stock for the time being.
With the ongoing structure on all the time frames, the stock has a more capacity to move ahead up to the level of Rs 3550-4018 while downside support comes at Rs 3100 level.
Disclaimer: The author is Associate Director, Research at choiceindia.com. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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