NEW DELHI: The country's largest software company Tata Consultancy ServicesBSE -1.41 % (TCS) will report its quarterly results post market hours on Wednesday. The IT major is likely to a report a net profit of Rs 3,611.7 crore for quarter ended March 2013 as against Rs 3,551.8 crore in the last quarter, says an ET Now poll.
Shares of the company off-late have been under pressure, down over 5 per cent so far in the month of April, which according to analysts is largely on profit booking as the stock has surged nearly 18 per cent in the same period.
"Tata Consultancy Service Ltd (TCS) has corrected almost 6.5% since last four trading sessions. The immediate crucial resistance of the stock is at Rs 1525 and a breach of this level is likely to take the stock higher to Rs 1550 and then Rs 1580," said Ranajit Kumar Saha, senior manager - Technical Research at MicrosecBSE -0.76 % Capital Ltd.
"We recommend initiating long positions in the stock only above Rs 1525," he added.
Most brokerage firms have a positive view on the stock and expect it to maintain its industry leading growth rate.
"TCS is likely to maintain its industry leading growth rate in this quarter as well, in our view," HSBC said in a note. It remains 'Overweight' on TCS, notwithstanding the premium valuations.
TCS is falling since the last few weeks. However the pace of fall is not as fast as in case of its peers from the IT sector.
"Currently the stock is finding support near daily lower Bollinger Band, which is expected to throw the stock up," said Gaurav S. Ratnaparkhi, Technical Analyst at Sharekhan Ltd.
"A minor degree bounce from current level would provide an opportunity to initiate fresh short position as the medium term trend for TCS is down," he added.
Ratnaparkhi is of the view that the strategy for TCS would be to sell on rise near Rs 1500 - 1525 with stoploss of Rs 1575 for targets of Rs 1400 - 1350.
ABDUL WAHEED
PGDM 2nd SEM.
IIMT COLLEGE OF MANAGEMENT
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