I am holding the shares of Tata Consultancy Services (TCS) at ₹4,030. What is the outlook for this stock? Should I book loss at current levels?

Sanjay

TCS (₹3,661.3): The long-term trend of this stock has been up. Within the overall uptrend, TCS has been consolidating in a broad sideways range for a prolonged period of time. The range of trade has been ₹3,350-₹4,050 since September last year. In the short term, the chances are high for the stock to fall towards ₹3,350 – the lower end of the range in the next four to six weeks. We expect the sideways range to remain intact. As such the stock can bounce back again and move up towards ₹3,900-₹4,000 thereafter in the short term.

Historical price movement indicates that TCS has always consolidated sideways before beginning a fresh leg of rally. As such an upside breakout above ₹4,050 is more likely. Such a break will pave the way for a fresh rise towards ₹4,800 and even ₹5,000 over the long term. You have bought this stock near the upper end of the range. Assuming that you are a long-term investor, consider accumulating this stock on dips to ₹3,380. Keep a stop-loss initially at ₹3,030. Move the stop-loss up to ₹3,620 as soon as the stock moves up to ₹4,320. Trail the stop-loss up to ₹4,120 as soon as the stock rallies to ₹4,650. Book profits at ₹4,780. The region between ₹3,200 and ₹3,100 is a strong support that can limit the downside in case TCS breaks the current range below ₹3,350.

I have shares of Vedanta at an average rate of ₹381. What is the long-term view of this stock? Can I accumulate at current levels?

Shivaswamy

Vedanta (₹425.75): The stock has been in a strong uptrend since April 2020. Within this uptrend it broke above a key resistance level of ₹405 recently. However, the stock is coming closer to the previous high of ₹494.3 made in April 2010. It is now important for the stock to sustain above ₹405 and also break above the previous high of ₹494.3 decisively in order to keep the current uptrend to extend further. Supports below ₹405 are poised at ₹365 and ₹345. The outlook will turn bearish only on a strong fall below ₹345. In that case a fall to ₹260 and even ₹200 is possible.

However, as long as the stock sustains above ₹405 for now, it has potential to breach the previous high and target ₹540 in the coming months. Keep a stop-loss at ₹320 and hold it. You don’t have to accumulate at current levels. Trail the stop-loss up to ₹410 as soon as the stock moves up to ₹480. Move the stop-loss further up to ₹485 as soon as the stock rallies to ₹515. Book profits at ₹535.

What is the medium-term outlook for the stock of NOCIL?

Vishal

NOCIL (₹234.55): The broader trend has been up for this stock since April 2020. It made a high of ₹321 in October last year and has been on a corrective fall since then. This corrective fall has found strong support just above ₹191 and the stock is attempting to bounce. The 21-Month Moving Average, currently at ₹202, has been limiting the downside since February. This gives an early indication that the corrective fall could have ended. A strong rise past ₹260 will confirm the same and will open the doors for a fresh rally towards ₹320 and ₹340 in the next three to six months.

Investors with a medium-term perspective can consider buying this stock at current levels. Accumulate on dips at ₹210. Keep a stop-loss at ₹178. Trail the stop-loss up to ₹255 as soon as the stock moves up to ₹290. Move the stop-loss further up to ₹285 as soon as the stock touches ₹310. Book profits at ₹330. The bullish outlook will get negated only if the stock falls below ₹190 decisively. In that case the stock can fall to ₹160 and even lower.

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