Techno Funda Picks - TCS: IT bellwether at 52-week EMA presents favorable risk-reward proposition...

TCS: IT bellwether at 52-week EMA presents favourable risk-reward proposition...

Technical View:

- The IT index remains a key outperformer in relative terms within its secular up trend. TCS has undergone base formation at its key support around Rs. 3400 offering favourable risk-reward to ride its structural uptrend

- Key point to highlight is that the stock has held its 52-week EMA on numerous occasions since CY17 barring March 2020 and made a strong comeback. In the current context, the stock held its rising 52-week EMA (at Rs. 3400) that coincides with August 2021 breakout area. Further, pace of retracement of last up move (Rs. 3132-4043) indicates inherent strength

Fundamental View:

- Tata Consultancy Services (TCS) is one of the leading IT service providers with a presence in BFSI, communication, manufacturing, retail & hi tech. Consistent organic revenue growth and industry leading margins (>25%)

- TCS is key beneficiary of multi-year growth (15-20%) in digital technologies. There would be short term margin pressure but we believe that since now clients have been acknowledging the cost pressure and are receptive about price hikes in the deals, it would mitigate any short term impact on margins

For details, click on the link below:

Link to the report

Shares of Tata Consultancy Services Limited was last trading in BSE at Rs. 3708.25 as compared to the previous close of Rs. 3700.95. The total number of shares traded during the day was 133080 in over 12704 trades.

The stock hit an intraday high of Rs. 3730.00 and intraday low of 3689.60. The net turnover during the day was Rs. 493415832.00.

Source : Equity Bulls

Keywords

TataConsultancyServices INE467B01029 TCS ICICIDirect