TCS can hit Rs 4,500 provided it can surpass Rs 4,000 mark on good volume

Tata Consultancy Services (TCS) gained ground in a weak market on Tuesday, a day after the company after post declaring Q4 results on April 11, 2022. The information technology (IT) major reported its highest-ever order book and crossed the revenue milestone of Rs 50,000 crore in the last quarter of 2021-22 (Q4FY22). The company also logged highest incremental revenue addition of Rs 350 crore in a year. READ MORE

As of 11:10 AM, the stock was up 0.8 per cent at Rs 3,726, as against a 0.8 per cent decline on the benchmark S&P BSE Sensex. 

Investors and market experts anticipate a strong recovery in the IT segment, which has underperformed relatively to benchmark indices lately. The Nifty 50 reversed 15 per cent, while Nifty IT managed to retreat only 13 per cent from their recent respective lows.

 

Tata Consultancy Services (TCS)
Likely target: Rs 4,500 (after overcoming Rs 4,000)
Upside potential: 12%

Accoriding to the weekly chart, the 50-day moving average (DMA) positioned at Rs 3,533 and the horizontal trendline of Rs 3,300 stand as the medium-term support marks.

On the upper end, a breakout above Rs 4,000 could see a next rally towards Rs 4,500. The present price action trades above 200-DMA, currently situated at Rs 3,601 level, shows the daily chart.

Going ahead, TCS needs to create a strong base and momentum in the range of Rs 4,000 to Rs 3,800 levels, which the stock has been unable to conquer with ease.  CLICK HERE FOR THE CHART