Looking at the Chart, TCS (CMP:2522) has immediate support zone of around 2494-2480-2450. Sustain below 2450, it could fall to 2436-2399 area and consecutive closing below 2399, TCS may further fall to 2353-2315-2300 territory in bear case scenario.
On the ascent, TCS has to sustain over 2525 for an immediate target of 2540-2560-2585 & 2605-2620-2650 in short term. Only consecutive closing above 2650, it may target 2713-2782 in the midterm & in the long term, TCS could scale up to 2850 & 3075-3150 in bullish market scenario (FY:16-18).
Thus, in brief, technically for TCS, 2480-2650 might be proved as strong demand (support) & supply (resistance) zone in the near term.
Bottom Line: Technical Trading Levels (Positional)
| SL</>10 | FROM SLR | |||||||||
| TCS | CMP | 2522 | ||||||||
| T1 | T2 | T3 | T4 | T5 | T6 | T7 | SLR | |||
| Strong > | 2480 | 2494 | 2525* | 2560 | 2585 | 2605-20 | 2650* | 2713-82 | 2840 | <2460 |
| Weak < | 2460 | 2436 | 2399-80* | 2353 | 2315 | 2300* | 2275-20 | 2145 | >2480 | |
Q1 result of TCS published yesterday after market hours is by and large above/in line with street estimates, although it has missed revenue growth expectation slightly (actual 3.5% against 4.1% estimates).
The Q1 result was backed by superior North America, UK/EU, MEA & parts of Asia Pacific region performance (retail/financial services/life sciences). The management is confident about future prospects there and clients are also in investing mode, specially in growing digital platform. But telecom and oil & gas sector may lagged behind.
Looking ahead, "Digital India" theme may contribute immensely in bottom line of TCS, but the headache might come from cross currency headwinds in EURO, thanks to on going Greece drama. But, again TCS has very limited exposoure in that region and what ever may be the result of this Greece debt crisis, EUR/USD might be kept as range bound between 1.05-1.15 ( with max +/- 0.05 on either side), thanks to superb intervention tactics by central bankers, specially ECB & FED.
Thus it should not be a great issue for a big & professional IT company like TCS, to manage its cross currency hedge in EURO effectively in the days ahead.
As par BG metrics, current median valuation of TCS may be around 2525 and projected fair valuations might be around 2750-2925-3125 (FY:16-18) as par the current market trends.
| SCRIP | EPS(TTM) | BV(Act) | P/E(AVG) | LONG TERM | SHORT TERM | MEDIAN VALUE | 200-DEMA | 10-DEMA |
| TCS | 101.95 | 251.16 | 24.39 | 2505.38 | 2515.84 | 2510.61 | 2524.35 | 2545.47 |
| TCS | 122.01 | 315.95 | 24.39 | 2740.81 | 2752.25 | 2746.53 | 2524.35 | 2545.47 |
| TCS | 138.35 | 395 | 24.39 | 2918.57 | 2930.75 | 2924.66 | 2524.35 | 2545.47 |
| TCS | 157.25 | 493.75 | 24.39 | 3111.54 | 3124.53 | 3118.04 | 2524.35 | 2545.47 |
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