Investors who have taken a long term view on the Tata Consultancy Services (TCS) stock should remain invested in this stock, technical analyst Nilesh Jain of Anand Rathi opined. He said that this stock is likely to achieve the buyback price of Rs 3000 well in advance of the tendering date. TCS stocks are currently trading around Rs 2825. On Tuesday, this stock was down by 4.3 per cent from the previous close of Monday.

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While the stock price is still around Rs 175 shy of the Rs 3000 mark, the analyst said that he expected the stock to easily reach Rs 2950 in the near term. Albeit some correction once the buyback by the company is over, the stock is expected to see fresh upward movement. He said that there will not be much gain in booking profits from now till the time of the buyback as the prices are expected to reach up to the buyback price of Rs 3000 very soon.

For those investors who are willing to exit the stock, should wait till the buyback time to get maximum gains.    

Though it was unlikely that there will be significant downward corrections, the investors who wish to take fresh long positions can look to buy the stock on 2-4 per cent dip from here, Jain said. He advised them to wait for market correction which is due in the IT sector stocks. He expects profit booking in the near term across the board, considering the rally IT stocks have seen. This is after the buyback is over, he said.

The buying range for him was between Rs 2700-Rs 2800.

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The IT bellwether reported a 4.8 per cent sequential growth in its revenues in September in constant currency terms and operating profit margin of 26.2 per cent was the highest in the past eight quarters.