Shares of Tata Consultancy Services (TCS) rose 1.19 per cent on Friday to settle at Rs 3,374.20 on BSE. The stock has gained 3 per cent in the past five days. Around 99,000 shares changed hands today, which was higher than TCS’ two-week average volume of 91,000. Turnover on the counter stood at Rs 33.09 crore, commanding a market capitalisation (m-cap) of Rs 12,34,637.11 crore.
Support on the counter could be seen at Rs 3,230, followed by Rs 3,250 and Rs 3,270, technical charts suggested. Resistance could be found at Rs 3,365 and Rs 3,450 levels.
Analysts largely said that the scrip may move towards Rs 3,420-Rs 3,500 levels in the near term. One analyst said that TCS could hit the Rs 3,700 level in the medium term, while another felt those looking to enter the Information Technology (IT) space can bet on the counter.
Ravi Singh, Vice-President and Head of Research at Share India, said, “TCS is in structurally up trend after making recent lows. The historical price action in the stock reflects that any meaningful development in the stock attracts market participants, which helps the stock to gain its uptrend. The immediate support is placed around Rs 3,250 level. Immediate resistance is placed at Rs 3,450 levels. The immediate target in TCS stock is placed around Rs 3,420 levels in coming trading sessions.”
Sneha Seth, Derivatives Research Analyst at Angel One, said, “The counter may move towards Rs 3,500 followed by 3,700 in the short to medium term. Traders looking for entering the IT space could prefer TCS and buy the stock with a stop loss placed at Rs 3,225.
AR Ramachandran from Tips2trades said, “TCS looks slightly bearish with strong resistance at Rs 3,365. Investors should buy only if the daily close is above Rs 3,365 for a target of Rs 3,520 in the coming days. Strong support will be at Rs 3,270.”
Amol Athawale, Deputy Vice-President – Technical Research at Kotak Securities, “For the bulls, Rs 3,230 would be the immediate support zone.”
The stock today traded higher than 5-day, 20-, 50-, 100- and 200-day moving averages. TCS has an average target price of Rs 3,647.64, Trendlyne data showed, suggesting a potential upside of 8.09 per cent. It has a one-year beta of 0.91, indicating low volatility on the counter.
The counter’s 14-day relative strength index (RSI) came at 58.97. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 31.21.
On the financial front, TCS kickstarted the corporate earnings season on a positive note. India’s largest IT exporter reported an 11 per cent year-on-year (YoY) rise in profit at Rs 10,846 crore for the December quarter (Q3 FY23) compared with Rs 9,769 crore in the corresponding quarter last year.
Revenues for the quarter jumped 19.10 per cent (YoY) to Rs 58,229 crore from Rs 48,885 crore in the same quarter last year.
TCS also declared a third interim dividend of Rs 8 and a special dividend of Rs 67 per equity share.
Meanwhile, Indian equity benchmarks settled higher today amid a volatile session. The 30-share BSE Sensex index rose 303 points or 0.51 per cent to close at 60,261, while the broader NSE Nifty platform finished 98 points or 0.55 per cent higher at 17,957.
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