TCS share price: Experts say this is a share to buy for 5% returns in one month
TCS share price: Q1FY20 results of the company reflect strong fundamentals and hence its share price may move 4-5 per cent upward in one month, say experts.
TCS share price: The Tata Consultancy Services (TCS) has continued its robust financial show in the Q1FY20 logging Rs Rs 8,131 crore in net profit, which is 10.77 higher if compared to Rs 7,340 crore in the corresponding period of the previous year. However, the IT giant registered a dollar flow that is lesser than the market expectations but it won't dent TCS share price much in short-term, mid-term or long-term. As per the market experts, the counter will witness some profit booking in the next few sessions once it reaches the Rs 2100 levels, it would be an excellent buying opportunity for the stock market investors for near 4-5 per cent returns in short-term (one month) and around 17-18 per cent in mid-term means in near three months.
Speaking on the TCS share price outlook keeping its Q1FY20 results Prakash Pandey, Head of Research at Fairwealth Securities said, "TCS share price would show some correction as its first-quarter results are not on the lines of market expectations. However, if we compare its performance with other IT companies, this is the share that would fuel the IT index at Indian indices." Pandey said that TCS share price may show Rs 2100 levels in few trading sessions and once it reaches that levels, stock market investors can take a buy position in the counter maintaining a stop loss at around Rs 2,050 per stock levels. In the short-term, the counter is expected to show around 4-5 per cent upside momentum.
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Giving details of the TCS share price technicals, Simi Bhaumik, a SEBI registered technical equity expert said, "The counter has strong support at Rs 2050 to 2070 levels and has strong resistance at Rs 2200 per stock levels. Once it clears the upper side hurdle, the counter is expected to become highly bullish and hence I recommend stock market investors to adopt buy on dips in the stock maintaining stop loss at around Rs 2050."
According to Amit Chandra, Analyst at HDFC Securities, The TCS share price is overall bullish and once it breaks the Rs 2200 levels, it is expected to show Rs 2470 levels soon i.e. in the mid-term perspective."
Standing in sync with Chandra's views Bhaumik advised investors to book profit once the counter reaches Rs 2200 hurdle and re-enter when it sustains above the Rs 2200 levels.
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