Home/ Markets / Stock Markets/  TCS could gap up to Infy ADR, up 2.9% at open on Nasdaq

MUMBAI : 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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Updated: 10 Oct 2022, 09:07 PM IST
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