Tata Consultancy Services (TCS) share price traded lower in afternoon trading on Tuesday, going at Rs 4,080 after losing 0.4 percent. Nonetheless, a stay above the psychological Rs 4,000 mark is significant for the stock as it attempts to reverse its prolonged loss recorded between mid-September to mid-October. TCS (NSE: TCS) is down by 6 percent in the last month, but has gained 5 percent in the last five sessions to build traction for the upside.
Despite its struggles in the last month, TCS share price is still up by 21 percent year-to-date, and the underlying momentum will provide near-term support. However, a stronger upside momentum will be attained once the stock returns above the Volume Weighted Moving Average (VWMA) on the daily chart. As of this writing, the VWMA is at Rs 4,148, which is about 1.8 percent from the current price.
TCS has been under pressure in recent weeks after it posted soft quarterly earnings report that showed its revenue had beaten forecasts, but the EPS came in at Rs 32.9, lower than the forecast Rs 34.8. However, good news came out on Tuesday as the company revealed that it had won a 15-year contract to develop and operate a platform for Ireland’s retirement benefits scheme. The program targets to auto-enroll about 800k workers through the Department of Social Protection.
TCS share price will likely stay on the upside if the buyers keep it above the 4,079 pivot mark. The upward momentum will likely meet the first resistance at 4,096. If the momentum strengthens, it could break above that mark to test 4,114.
Alternatively, the sellers will take control if the stock moves below 4,079. In that case, the first support could come at 4,063. However, if the downward momentum strengthens, it could break below that level, at which point the upside narrative will be invalid. Meanwhile, the decline could extend to test the second support at 4,044.
This post was last modified on Oct 29, 2024, 09:10 GMT 09:10