YR 2022 Idea #7: Long on TCS This is a public swing trade idea and is only for Learning and observational purpose. Please understand your risk and take full responsibility of your actions. We would comment on any further updates on our entry, targets and stop-loss on this idea, so make sure to follow if you want to get further updates. Our objective to help anyone who wants to learn technical analysis using charts. You can post your queries in comment section here and we will try to answer asap.
TCS
TCS GOING TO HIT AGAIN 4000 SOONOn the daily chart, the Share holds a major support level at 3750 with good volumes. If he holds it and momentum continues as per the chart then it going to test again at 4000 levels in the near future. Also, Rounding Curve is showing if he breaks level 3930 and holds it.
Short term target is 4000 from the current level
Long term target is 4200 in 6 months
NIFTY IT PRICE ACTION ANALYSISNIFTY IT index is currently at a potential reversal point suggested by the XABCD bullish crab pattern and low RSI value on the daily timeframe.
The bounce may be up to 0.382-0.618 fib zone extension of CD.
This doesn't mean IT would reverse its trend from here. Before the budget, it might test important resistance 36750. This might be just a correction for the falling impulse.
So, beware and wait for confirmation before investing.
TCS: Range bound movement till Mar 2022 ?TCS
The stock looks likely to be range bound
Broader range 3400-4000
Plan your trade accordingly...!!!
Take care & safe trading...!!!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
NIFTY50 Future Intraday support and resistances 24/01/2022NIFTY50 may open gap up because of good Q3 results of ICICIBANK, if nifty sustains at the upper levels we can see levels of 17800/17950 in NIFTY Future.
If on the lower hand levels of 17500 breaks in Nifty Future we can see levels of 17450/17320 in Nifty Future
TCS LongI hope you can now see how TCS represents an excellent low risk profit entry setup allowing you to trade in the market. Take positions so that the risk/reward is in your favor.
Knowing why, where & when a strong reversal signal is being generated will be the only way to capitalize on your technical analysis .
Disclaimer: It should not be assumed that the methods, techniques, or indicators presented in these chart will be profitable or that they will not result in losses. There is no assurance that the strategies and methods presented will be successful for you. Past results are not necessarily indicative of future results. You should not trade with money that you cannot afford to lose. Examples presented in these charts are for educational purposes only and it should not be assumed that these are indicative of ordinary trades. These setups are not solicitations of any order to buy or sell. The publisher assume no responsibility for your trading results. There is a high degree of risk in trading.
TCS looks Bullish as it gave breakout of all time highIt not just gave breakout but also sustaining over it which is a bullish sign.
TCS share price was Rs 3,985.00 as on 17 Jan, 2022, 10:07 AM IST. TCS share price was up by 0.42% based on previous share price of Rs. 3897.9. In last 1 Month, TCS share price moved up by 11.01%.
Top 4 Peers for TCS are Infosys Ltd., HCL Technologies Ltd., Wipro Ltd. and Tech Mahindra Ltd.
Key Metrics for TCS are:
PE Ratio of TCS is 39.10
Earning per share of TCS is 98.89
Price/Sales ratio of TCS is 7.16
Price to Book ratio of TCS is 16.85
TCS - Trading at Previous high, potential targetPrice trading near the previous high, as discussed CNXIT is about to break the previous high these IT stocks should be the potential targets for the traders.
One can wait for the breakout from the previous high or get it on when there is a retest of the breakout level !!!
TCS BULLISH BREAKOUT - positional TCS after recent correction again heading to bullish after breakout seen in daily chart. bullish confirmation candle seen clearly on chart .
As Prime bet from IT Sector TCS can outperform even in falling market .
BUY TCS @3640
TARGET 3850-3900 (1 month )
Stop Loss 3450
This analysis purely base on technical indicators please make own study and take final call.
Wish u Happy Trading !!
TCS Buy-back & how I got it rightTCS BUY BACK & HOW I GOT IT RIGHT
BACKGROUND
TCS declared its Q3 results last evening and it was expected to announce a share buy-back proposal. This news was available ahead of the results and therefore, I decided to work out what could be the likely buy-back price that it may offer.
Based on my observations, TCS has a tendency to cross the buy-back price and then retrace either below or around the buy-back price just when the buy-back approaches. The logic is that the scrip is unlikely to trade above the buy-back price and is more likely to fall for some time.
INTENT
I have holdings in the scrip so I was eager to test my logic of arriving at the likely buy-back price.
In the past. I have traded TCS pre and post-buy-back with the intention to make trading gains so I may enter a trade as & when I find a good risk-reward opportunity.
So my intent was to know the likely range that it may offer should I decide to buy TCS.
WORKING
In my view, a company that opts for buy-back of shares is either trying to compensate the shareholders from the available surplus or it may be willing to consolidate its own position as it expects improved performance in the coming periods. It could also be for both the reasons. In reality, I am not affected by their reason as long as the price offered is at a better premium than the ruling price. This will motivate me to stay put with my holdings and or induce me to initiate a new trade.
My work to arrive at the price was done a day ahead of the announcement and for those who may be quick to think that what is the point in writing the article post-facto, I have pasted a link to the video where I have stated the price range that may be used for arriving at the buy-back price.
On 11-1-21, TCS closed above 3900 so I kept 3900 as the base and did the following:
Case 1
The offer price could be at a premium of 10% to the ruling price.
So, 3900*1.10 = 4290 so I rounded-off to 4300.
Case 2
The offer price could be at a premium of 15% to the ruling price.
So, 3900*1.15 = 4485 so I rounded-off to 4500.
The reason for 10% is that it is a good enough incentive to the shareholders to tender the shares and is more than the returns that a debt instrument would give.
The reason for 15% is that the company may want to top up the premium with a hidden component of dividend which is otherwise taxable.
My conclusion was that TCS may offer the buy-back within this range with 4500 being the cap as I felt anything more would mean that the company may be doing social service than rewarding its shareholders.
My reading was that the shares would in any case not cross 4000 immediately as TCS has the tendency to go sideways to negative post results and as the time elapses from the result release, it goes down if the sentiment is not positive.
CONCLUSION
Since I have some holdings in TCS, I am happy that a part of that would be tendered at the final price that the company may announce .
I now have a range of 600 points from 3900 to 4500 which is available for me to decide about trading the scrip subject to the right set-up and more importantly funds availability.
I am now encouraged to test the approach for such announcements that the other companies may make.
Here is the link to the video:
youtu.be
I would be happy to read your feedback.
Thank you,
Umesh
13-1-22
Not SEBI Regd.
Shared for the purposes of Educational & Informational purposes only.