1. Tata Consultancy Services
| Counter | TCS LTP 3300.50 |
| Call | Buy on dip |
| Target 1 | 3420 |
| Target 2 | 3650 |
| Stop Loss | Below 3200 |
| Time Horizon | 3-4 weeks |
| Notes | Buy-on-dip towards 3300 & 3240 |
Tata Consultancy Services is an IT services, consulting, and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive-powered, integrated portfolio of business, technology, and engineering services and solutions. This is delivered through its unique Location Independent Agile delivery model, recognized as a benchmark of excellence in software development.
| Previous Close | 3215.5 | TTM EPS | 115.2 |
| 52 Week High | 3575.0 | TTM PE | 28.7 |
| 52 Week Low | 2926.1 | P/B | 13.5 |
| Sector PE | 29.2 | Mkt Cap (Rs. Cr.) | 12,08,310 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- TCS has been experiencing a period of “Consolidation” and has been under pressure for the past year.
- Over the last five quarters, the stock has established a strong base around the 3000 level, suggesting that this is a significant and critical long-term support level for the next year or more.
- Within the current range, the stock closed positively last quarter above the 3300 level, suggesting a potential retest of its recent high in the 3550-3600 zone.
- Investors can consider buying the stock for short to mid-term delivery at current levels and on dips as per the levels mentioned, anticipating a pull-back.
- In the short term, 3180 can be seen as a crucial support level, while on the higher end, 3420 and the next higher major 3650-3700 can be seen as potential target levels and mid-term resistance zones.
Open Interest Study
(Source: Fisdom Research)
- The TCS July series Option Chain Study shows the highest Put Option (PE) build-up at 3200 and next at 3300 strike levels, indicating these as support levels.
- On the higher end, the maximum Call Option (CE) build-up is seen at 3400 and 3300 strikes.
- This setup suggests that the range for the stock is capped on the upside.
- Since it’s the beginning of the series, further developments in the Option Chain study will provide a clearer picture of the existing sentiments for the stock.
- Based on the current setup, one can consider “Hedged Long” strategies for the July Series with support at the 3200 strike level.
F&O Strategy
| Scrip | TCS LTP 3300.50 |
| Risk | Moderate |
| Ratio | 1:2 |
| Bias | Range to positive |
| Max Reward Expected | ₹ 26,950 |
| Max Risk Expected | ₹ 8,050 |
| Action | Scrip | QTY | IP | LTP |
| BUY | TCS JUL 3300 CE | 175 | 74 | 74 |
| SELL | TCS JUL 3500 CE | 350 | 14 | 14 |
|
2. Apollo Hospitals Enterprise Limited
| Counter | APOLLOHOSP LTP 5095.60 |
| Call | Buy on dip |
| Target 1 | 5530 |
| Target 2 | 5620 |
| Stop Loss | 4800 |
| Time Horizon | 3-4 weeks |
| Notes | Buy-On-Dip towards 5100 & Avg around 4920 |
Apollo Hospitals was established in 1983 by Dr. Prathap C Reddy, renowned as the architect of modern healthcare in India. As the nation’s first corporate hospital, Apollo Hospitals is acclaimed for pioneering the private healthcare revolution in the country. Apollo Hospitals has emerged as Asia’s foremost integrated healthcare services provider and has a robust presence across the healthcare ecosystem, including Hospitals, Pharmacies, Primary Care & Diagnostic Clinics and several retail health models.
| Previous Close | 5128.0 | TTM EPS | 57.0 |
| 52 Week High | 5294.0 | TTM PE | 89.5 |
| 52 Week Low | 3635.2 | P/B | 12.4 |
| Sector PE | 67.2 | Mkt Cap (Rs. Cr.) | 73,304 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- The stock has been trading within a specific range for an extended period.
- In the first week of June 2023, the stock price broke above the 5000 mark for the first time since November 2022 and then entered into another period of consolidation.
- For the past four weeks, the stock has been consolidating above the 5000 level and is expected to see a significant upward movement in the coming days.
- Traders can consider buying the stock if it stays above the 4830 and major 4600 levels, anticipating a rise towards 5620 and major 6060 levels in the upcoming weeks.
Open Interest
(Source: Fisdom Research)
- The option study for the July series so far suggests that a base is forming around the 5000 level.
- The stock has the highest Put Option build-up at the 5000 Strike price, while the highest Call Option build-up is at the 5200 level, which could be an immediate obstacle.
- As it’s just the beginning of the series, further developments in the Option Chain can provide a more accurate sense of market sentiment for this month.
- Overall, the immediate bias could be a “Range to Up” above the 5000 level.
F&O Strategy
| Scrip | APOLLOHOSP LTP 5095.6 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to positive |
| Max Reward Expected | ₹ 20,250 |
| Max Risk Expected | ₹ 17,250 |
| Action | Scrip | QTY | IP | LTP |
| BUY | APOLLOHOSP JUL 5000 CE | 125 | 220 | 220 |
| SELL | APOLLOHOSP JUL 5300 CE | 125 | 82 | 82 |
|
Disclaimer: This document is not intended for anyone other than the recipient. The contents of this document may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. If you have received the publication in error please notify the sender immediately. If you are not the named addressee, you should not disseminate, distribute or copy this document. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited. All non-authorised reproduction or use of this document will be the responsibility of the user and may lead to legal proceedings. This document has no contractual value and is not and should not be construed as advice or as an offer or the solicitation of an offer or a recommendation to take action in consonance in any jurisdiction. Finwizard Technology Private Limited (“Fisdom”) makes no guarantee, representation or warranty and accepts no responsibility or liability for the accuracy or completeness of the information and/or opinions contained in this document, including any third party information obtained from sources it believes to be reliable but which has not been independently verified. In no event will Fisdom be liable for any damages, losses or liabilities including without limitation, direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your use of this document or your reliance on or use or inability to use the information contained in this document, even if you advise us of the possibility of such damages, losses or expenses. Fisdom does not undertake any obligation to issue any further publications or update the contents of this document. The information stated and/or opinion(s) expressed herein are expressed solely as general commentary for general information purposes only and do not constitute advice, solicitation or recommendation to act upon thereof. Fisdom does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. The information contained within this document has not been reviewed in the light of your personal circumstances. Please note that this information is neither intended to aid in decision making for legal, financial or other consulting questions, nor should it be the basis of any investment or other decisions. Fisdom may have issued other similar documents that are inconsistent with and reach different conclusion from the information presented in this document. The relevant offering documents should be read for further details. You should make such researches/inspections/inquiries as it deems necessary to arrive at an independent evaluation of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks involved. Fisdom makes no representations that the offerings mentioned in this document are available to persons of any other country or are necessarily suitable for any particular person or appropriate in accordance with their local law. Among other things, this means that the disclosures set forth in this document may not conform to rules of the regulatory bodies of any other country and investment in the offer discussed will not afford the protection offered by the local regulatory regime in any other country. Past performance contained in this document is not a reliable indicator of future performance whilst any forecasts, projections and simulations contained herein should not be relied upon as an indication of future results. The historical performance presented in this document is not indicative of and should not be construed as being indicative of or otherwise used as a proxy for future or specific investments. The relevant product documents should be read for further details. Fisdom does not undertake any obligation to issue any further publications to you or update the contents of this document and such contents are subject to changes at anytime.
