After a pointy fall, the inventory of Tata Consultancy Companies (TCS) (₹3,483.25) is ruling at a essential juncture. It finds a right away help at ₹3,350 and a significant one at ₹3,008. A detailed beneath the latter will alter the long-term bullish construction for TCS.
The inventory finds a right away resistance at ₹3,670. Solely a detailed above ₹3,964 will arrest present bearish bias for the inventory. However broadly, we count on the inventory to maneuver in a spread with upward bias.
F&O pointers: TCS witnessed a rollover of almost 95 per cent of the positions from February to March, which is way increased than the 3-month and 6-month averages of about 91-92 per cent.
However, there appears to be some worth shopping for as TCS March futures at ₹3,503.95 maintains a wholesome premium over the spot value of ₹3,483.25.
Technique: We advise merchants to purchase 3,500-call on TCS that closed with a premium of ₹82.80 on Friday. Because the market lot is 175, this could price merchants ₹14,490. The utmost loss could be the premium paid (i.e., ₹14,490) which can occur if TCS fails to shut above ₹3,500 on expiry. The break-even level is ₹3,582.80.
We advise merchants to purpose for an preliminary goal of ₹150 for TCS 3500-call. Merchants with increased danger urge for food can set ₹200 as goal. If the inventory opens sharply decrease, merchants can avoid this technique.
Observe-up: Technique on Tech Mahindra failed because the inventory fell sharply and triggered the cease loss.
Be aware: The suggestions are based mostly on technical evaluation and F&O positions. There’s a danger of loss in buying and selling.
