TCS shares continued to march northward ahead of the company’s annual general meeting (AGM) scheduled on Thursday, June 11. The stock gained nearly 3 per cent today to hit day’s high Rs 2,132.05 apiece on BSE. TCS share price has jumped nearly 7 per cent so far in June as compared to a 4 per cent rise in S&P BSE Sensex. In the afternoon deals today, TCS stock is the second top contributor in the Sensex up move and has rallied 41.5 per cent in a span of less than three months. However, the stock is still 7 per cent away from its 52-week high of Rs 2,296 hit in September last year. Analysts expect TCS to move towards Rs 2,200 level by the end of this week. “TCS is looking very strong on the technical charts, by giving a breakout over its 200 DMA and continuing to sustain above it,” Amit Gupta, Cofounder Tradingbells, told Financial Express Online.
“We can expect to see the stock move towards 2200 levels by the end of this week where it faces its next strong resistance,” Amit Gupta added. BSE Information Technology index was also trading nearly a per cent higher in the afternoon trade. Ramco Systems surged 20 per cent to hit upper circuit at Rs 91.90 apiece on BSE. The other gainers on the index include TVS Electronics, Expleo Solutions and Sonata Software. Due to the coronavirus led lockdown, companies changed their way of doing business with their employees working from home and doing online meetings. “The global IT services industry has seen gradual transformation in the past few years from traditional to digital services such as Cloud Computing, Artificial Intelligence, and Big Data Analytics,” Amit Gupta said. “In the past two months, during the coronavirus pandemic, the IT industry got a new boost to innovate and introduce better digital products to support this new normal,” he added.
Tata Elxsi, HCL Tech and Tech Mahindra were among other gainers on the Nifty IT index today, up in the range from 0.50-4 per cent. “TCS continues to have a low attrition rate among Tier 1 IT vendors, which has enabled better delivery execution,” Centrum Broking said in its research report. The report also highlighted that TCS has been showing strong momentum in Life Sciences vertical over the past few quarters. This vertical has been showing steady acceleration albeit on a smaller base.