Tata Consultancy Services Limited NSE: TCS was one of the biggest gainers in trade today. The stock rallied by close to 6% on the back of heavy volumes which is being seen as a huge positive by the traders on the street. The rally in the stock was on the back of a good set of results posted by the company in the fourth quarter which beat most street expectations both on the revenue and the profitability front. It is imperative to state that TCS is close to becoming India’s 1st 100Billion dollar company which is a huge positive for the company which is celebrating its golden jubilee this year.
Tata Consultancy Services Limited NSE: TCS reported that its dollar revenue increased by 3.9% (2% in constant currency terms) to $4.97 billion in the quarter ended 31 March from the preceding three months, thanks to higher client spend from most of its geographies and key industry verticals. The net profit for the company improved by 5.7% to $1.07 billion. Analysts on the street had expected a net profit figure of close to $1.05 billion. Even though the company does not provide for any guidance, many analysts on the street believe that the company could login a double digit growth for itself in the coming year which is being seen as a huge positive. The company also declared a dividend of Rs.29/- and a 1:1 bonus issue which is being seen as a huge positive by investors on the street.
Tata Consultancy Services Limited NSE: TCS has given a massive breakout on the daily charts. The stock is currently trading above all important daily moving averages which is a bullish signal. The momentum indicators for the stock have given a clear buy signal which is indicative of the strong bullish bias. The RSI for the stock continues to be in positive territory and shows no signs of a reversal which is being seen as a huge positive by the traders on the street. The stock continues to see massive support near the Rs. 3200 level and might find some resistance near levels of Rs. 3550 according to analysts on the street.
Looking at the derivatives data for Tata Consultancy Services Limited NSE: TCS continues to see huge open interest buildup at the 3500 CE which many believe would be a resistance for the stock in the near term. On the put side 3200 put continues to see highest open interest which is indicative of the strong support at those levels.