BackTCS could gap up to Infy ADR, up 2.9% at open on Nasdaq
TCS, whose profit crossed the ₹10,000 crore mark on the basis of strong deal wins , had a positive rub off on the Infosys ADR which traded up 2.9% at $17.56
PremiumMUMBAI : TCS, whose Q2 results marginally beat Street estimates, could open around 2.5% higher and move higher if option sellers cover their massive shorts at the 3200 level.
The stock closed up 1.75% at ₹3118.85 on Monday ahead of the results which were declared after market closing hours .
TCS, whose profit crossed the ₹10000 crore mark on the basis of strong deal wins , had a positive rub off on the Infosys ADR which traded up 2.9% at $17.56. The ADR trades after market closing here on the Nasdaq. Infy will report its Q2 numbers on October 13.
“I think the stock (TCS) has the potential to test ₹3400 over the next few sessions , with ₹3000 acting as a good support ," said Rohit Srivastava , founder , IndiaCharts.
Rajesh Palviya , derivatives and technical head at Axis Securities, said IT could provide some “cushion" to the index . He expects large caps like TCS and Infy to lead the gains in IT over the next few sessions .
“We could see a short covering bounce in TCS which could potentially gap up at open by 2% or higher," Palviya added .
Indian IT companies have been beaten badly on looming recessionary fears in US and Europe and have underperformed benchmark indices . The Nifty IT index at 28028 is down 23% from a year ago . Against this Nifty is down just 3.65% at 17241.
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