Mumbai :TCS, whose Q2 result marginally beat Street estimates, could open around 2.5% higher and move higher if options sellers cover their large shorts at the 3200 level.
Stock closed up 1.75% 3118.85 on Monday before the results were announced after market closing hours.
TCS, whose profits exceeded 10000 crore mark, on the basis of strong deal win, was a positive rub on Infosys ADRs, which was up 2.9% at $17.56. The ADR trades here on the Nasdaq after the market closes. Infy will report its Q2 numbers on October 13.
“I think the stock (TCS) has the potential to test 3400 in the next few sessions, with 3000 is acting as a good support,” said Rohit Srivastava, Founder, IndiaCharts.
Rajesh Palviya, head of derivatives and technology at Axis Securities, said IT could provide some “cushion” to the index. He expects big caps like TCS and Infi to lead the lead in IT in the next few sessions.
“We can see short covering bounce in TCS, which could potentially increase in a range of 2% or more,” Palviya said.
Indian IT companies have been hit hard by recession fears in the US and Europe and underperformed benchmark indices. Nifty IT index is down 23% from a year ago at 28028. In comparison, Nifty is down just 3.65% at 17241.
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