Trade Idea of The Day - Tata Consultancy Services Ltd Target Rs.130- Religare Broking Ltd
Tata Consultancy Services Ltd
BUY 30MAR 2600 PE Tata Consultancy Services Ltd Entry Range 95-100 Target Range 130 Stop Loss 82
Rationale
* On the daily chart TCS has decisively breached a major multi-year support level of 2600, signalling a breakdown from a long-term distribution phase.
* MACD Histogram witnessed a bearish crossover on the weekly timeframe and 14-Day RSI already placed in the oversold trajectory, confirming strong downward momentum for the coming sessions.
* The stock prices witnessed rejection from key 50-DEMA trendline indicating overhead resistance zone, while on the downside long-term trendline support near 2300 zone, marking a significant technical deterioration.
* On the derivative front March series witnessed a significant call activity at the 2600 strike, indicating near term hurdle, while put OI at 2500 suggests short term rebound zone for the stock prices.
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