TCS share price: Huge jump in shares of Tata Consultancy Services, Why Tata Consultancy Services stocks are skyrocketing — explained:- The share price of Tata Consultancy Services (TCS) has been consistently increasing since September 2023, showing a positive trend in the stock market. After closing at ₹3,356 per share on the NSE, the TCS share price reached a new 52-week high of ₹3,633.75 per share on the NSE, experiencing over an 8% rise this month. In fact, in the last five trade sessions, this major Indian IT company has hit the upper circuit on four sessions. This demonstrates the strong performance and growth potential of TCS in the stock market. Keep up the great work!
Stock market experts are optimistic about the future of the stock, believing that it still has room to grow and potentially reach ₹4,000 per share in the near to medium term. They explain that this positive outlook is due to investors shifting their funds from small-cap and mid-cap stocks to larger-cap stocks, which are currently being offered at discounted prices and have strong underlying fundamentals.
Reason for rally in TCS shares
Saurabh Jain, Vice President — Research at SMC Gloal Securities, explains that the TCS share price is experiencing a remarkable surge due to its availability at a discounted price. During the current stock market correction, investors are wisely reallocating their funds from small-cap and mid-cap stocks to high-quality large-cap stocks that are available at a discounted price. Moreover, TCS has recently witnessed a significant increase in order inflow, indicating the strong fundamentals of this Indian IT giant. This positive momentum has attracted investors who are confidently investing their money in this stock.
TCS share price chart
Sumeet Bagadia, Executive Director at Choice Broking, believes that the bull trend in TCS shares is expected to continue. According to him, the chart pattern shows that TCS shares are currently in a bull trend. Additionally, the stock has experienced multiple resistance breakouts at ₹3,550 levels. This suggests that the positive momentum is likely to persist. Keep up the good work!
TCS share price target
Sumeet Bagadia from Choice Broking has provided valuable advice to TCS shareholders. He suggests holding onto the scrip for an immediate short-term target of ₹3,800, with expectations of the stock reaching ₹4,000 in the mid-term. It is important to note that he strongly advises TCS shareholders to maintain a stop loss at ₹3,490 per share levels. This advice is given to ensure the protection of their investments.
TCS Q2FY24 results in focus
TCS shareholders should definitely remain vigilant about a trigger that Saurabh Jain of SMC Global Securities has highlighted. According to him, the Q2FY24 results of TCS will be of utmost importance. If the company manages to demonstrate improvement in attrition, margins, and order inflows, then it would be wise to continue holding the stock. However, in the case of disappointing Q2 results in 2023, there may be a possibility of profit booking which could lead to a temporary reduction in the current rally of the Tata group company.