Here’s why Mehul Kothari recommends buying TCS, L&T Technology Services
L&T Technology Services (LTTS)
Buy Above: Rs 3,200
Target: Rs 3,450
Stop Loss: Rs 3,050
Similar to other IT stocks, LTTS too has been trading in a bit of oversold conditions. On the daily chart, the price structure indicates that the stock is on the verge of a breakout which resembles an inverse head and shoulder pattern. The breakout would be confirmed above Rs 3,200 mark.
Thus, we advise traders to buy the stock above Rs 3,200 for an upside target of Rs 3,450 in the coming sessions.
Buy Near: Rs 3,050
Target: Rs 3,200
Stop Loss: Rs 2,950
TCS has been an outperformer during the recent crack in IT stocks. The stock fell the least in comparison to most of the peers. On the daily chart, we are witnessing a hammer formation followed by a green candle. This indicates a possibility of bounce.
Thus, we advise traders to buy the stock near Rs 3,050 mark for an upside target Rs 3,200 in the coming sessions.
(Mehul Kothari – AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).
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