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TCS at multi-year trendline breakout, Q3 to direct further
Bhagyashree Vivarekar
/ Categories: Trending, Markets

TCS at multi-year trendline breakout, Q3 to direct further

Tata Consultancy Services (TCS) which holds 3.3 per cent weightage in Nifty50 and 25.7 per cent in the Nifty IT index has retested its multi-year trendline at 2670 levels. On January 8, the stock breached its previous month’s high at 2709 levels.

After hitting its all-time high at around 2840 levels in October 2014, the stock witnessed gradual lower tops till November 2017. The stock broke out of the trendline in the second week of November 2017 supported by justifiable volumes. However, the stock witnessed a sharp pullback of nearly 10 per cent below the trendline. The fall was up to its upward sloping trendline level which kicked off November 2016. The stock bounced back and has broken out of the trendline level after a breather of one week. Oscillators are in the momentum zone of above 60, however, major price movement would be seen with volume pickup in the stock.

The company is expected to release its Q3FY18 results on January 11. The stock movement may get impacted by the expected subdued performance from IT sector as a whole for the December 2017 quarter. However, companies are expecting marginal revenue growth and not much de-growth for now. Thus, we can expect a positive rally soon, unless in case of a catastrophic result posting from any of the IT giants.
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