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Tata Consultancy Services Limited (TCS), a global leader in IT services, digital, and business solutions, spans a broad spectrum of industries and services. Its comprehensive portfolio, encompassing everything from IT and assurance services to digital software solutions, positions TCS as a pivotal player in the technology sector. The company’s involvement across diverse segments like BFSI, manufacturing, and retail, among others, underscores its integral role in the tech landscape.
In mid-February 2024, TCS share entered a retracement phase, retreating from a high of Rs 4184.75. This initiated a one-month period of consolidation, characterized by a flat wave structure with lower highs and equal lows. During this consolidation phase, the stock found robust support at Rs 3970, coinciding with the 23.6% Fibonacci level and the 40-day moving average, signaling the end of a flat correction wave and the start of a new impulse phase. The emergence of a critical falling trendline, traced from the high of February 9, 2024, to the peak of February 28, 2024, marked a significant turning point in TCS’s trajectory. This development hinted at a potential shift, culminating in a technical continuation pattern over the span of a month.
Over the last two trading sessions, TCS has demonstrated notable momentum, registering a surge of over 2% with volumes exceeding the average. The stock successfully closed above the Supertrend indicator (with settings of ATR 10, Factor 1), further validating the uptick in momentum. The most recent trading session saw TCS rallying by 1.85%, achieving a high of Rs 4229.95 and surpassing the crucial breakout trendline at Rs 4135 on significant volume, indicating a strong potential for continuation of this trend. A daily close above Rs 4135 would serve as a solid confirmation of the breakout.
With an eye on a target of Rs 4760, which represents an upside of over 15% from the breakout level of Rs 4135, TCS presents a compelling case for both swing and momentum traders. This breakout scenario underpins a promising outlook, hinting at considerable growth opportunities within the IT sector.
As TCS maneuvers its way out of a consolidation pattern into a period of potential growth, investors and market watchers are encouraged to keep a close eye on its performance. The company’s standing in the technology sector, coupled with the recent technical breakout, signals a prime opportunity for those looking to capitalize on the growth trajectory of a leading IT services provider.
The recent breakout in TCS’s stock price is not just a reflection of its current market dynamics but also a testament to the company’s enduring value proposition in the fast-evolving IT landscape. For investors and traders alike, TCS stands out as a stock worth watching, offering both short-term momentum opportunities and long-term growth potential.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions
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