Shares of Tata Consultancy Services (TCS) Ltd on Monday extended their upward run for the third consecutive session. The stock rose 1.73 per cent to hit an all-time high of Rs 4,493. It eventually settled 1.65 per cent higher at Rs 4,489.35. At this price, the IT major's scrip has gained 7.02 per cent in three trading days.
The Indian IT giant posted an 8.72 per cent year-on-year (YoY) rise in net profit at Rs 12,040 crore for the June 2024 quarter compared with Rs 11,074 crore in the same quarter last year. On the other hand, revenue from operations was flattish. It was up 2.24 per cent YoY at Rs 62,613 crore from Rs 61,237 crore in the corresponding quarter last year.
"Overall, IT stocks have been resilient. At present, they are showing a positive trend from a medium- to long-term perspective. The quarterly results were largely subdued. But, the probability of an interest rate cut in the US is very high. Considering this, investors should add quality IT stocks on every dip," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Technically, immediate support on the counter could be seen at 4,390, followed by Rs 4,300 level. On the higher end, TCS shares has potential to test the Rs 4,650 range in the near term, an analyst said.
"TCS has experienced strong growth in the last few trading sessions, leading to all-time highs. The runaway gap indicates that the momentum can continue. Any short-term downturn around the Rs 4,300 sub-zones is likely to be offset by a surge in the stock with strong support at Rs 4,150. As it moves into uncharted territory, predicting resistance at higher levels is challenging. However, with the breakout formation, it is likely to test Rs 4,650 in the near future," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Support will be at Rs 4,390 and resistance at Rs 4,460. A decisive close above Rs 4,460 level may trigger a further upside towards Rs 4,550. The expected trading range will be between Rs 4,300 and Rs 4,550 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 69.34. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 35.36 against a price-to-book (P/B) value of 22.16. Earnings per share (EPS) stood at 124.90 with a return on equity (RoE) of 62.66.