TCS stock closed on Friday, 7th Feb at 2136, while the 50 day SMA is at 2156.
TCS Technical Analysis: The stock made a triple top at 2244, and a failure to breakout created significant selling pressure, for correction till 2070. 10 day SMA below 50 day SMA is not a healthy sign, and many frontline stocks in India market (Nifty50) are showing this pattern.
TCS stock has been closing below its 50 day SMA for last several days, but with higher daily low, which indicates that stock maybe ready to rise further. Fresh long positions should be created above 2180 for target 2250.
TCS stock closed today at 2215. Day Open 2236, Day High 2242, Day Low 2211.
For the last 8 months, TCS has been mostly in the range between 2000 and 2220, and 2020 has acted as a strong support level everytime. 2280 level was attempted once but it failed, and gave a big correction, and 1900 level was tested successfully recently, and it gave a big rally. 2020 is a strong buying level for TCS.
The uptrend that started on 13 Dec 2019 is still intact. However, TCS stock is facing massive resistance/selling pressure at 2230-2250 level, and it has not been able to cross it in the last 6 months, despite 5 previous attempts. This is visible clearly in the weekly chart below.The 50 week moving average has been providing constant support at lower level, and the stock has been closing above that and trending up. This set up indicates either a definitive breakout above 2300 in the coming weeks, or a breakdown below 1900 (the two outer range levels for TCS in last 6 months). As the long term trend is up, a breakout above 2300 has higher probability in the coming 3-6 months. Above 2300, the upside target will be 2500.
TCS stock has a good correlation with S&P500, Nasdaq100 indices in the US market, because majority of TCS clients are based in North America (USA, Canada) and Europe.
TCS stock has been much more stable and stronger than its competitor Infosys.
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TCS (Tata Consultancy Services) is one of the world’s leading software/IT services providers, and it is based out of India, with offices and worldwide. TCS is known for its project execution capabilities at a large scale, and this helps in winning projects from the world’s largest clients.
The shares of TCS are listed on the two leading stock exchanges of India, NSE and BSE. TCS shares are considered very stable and reliable by investors, both domestic and foreign investors, and almost every correction in TCS share prices is used for buying by new and existing investors. TCS stock had made a big move in 2018 and 2019 has gone in consolidation of that big move. We may see new lifetime highs in TCS stock in the coming months.
TCS stock has bounced from its strong established support at 2000 level. Now, its moving up after a double bottom pattern, which is a reliable pattern. The breakout happened above 2123. The current upside target is 2190-2195, where a strong resistance is in place since October 2019. Traders should take profit around 2190 and wait for the stock to navigate the 2220 level. A clean new long trade will come above 2225 for target 2300. Having established 1980-2000 as a strong support, TCS should make new highs in 2020, and investors can expect 2500 level in 12-24 months. Investors can continue to buy/accumulate TCS at all levels between 2000-2200, because this is a long term investment stock, and we can see 3000+ level in 3-4 years.
Please note that TCS is sensitive to the movements of S&P500 and Nasdaq100 indices, because majority of TCS revenues from come North America and Europe, whose economies and business conditions are reflected in these two large equity indices. With the S&P500 and Nasdaq100 indices making new lifetime highs in December 2019, TCS should remain bullish. Thanks.