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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.
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