is searching for a new direction. Being one of the best IT servicing company, there has been lot of premium built up already and it is finding tough to crack 2800 mark. Last time we touched on TCS
about a year ago, it was forming a double top
near 2800. ( http://bombaybulls.com/tcs-doubletop-formation-is-bearish-2252015/
) After that it tried to go there couple of more times but all efforts failed. We are still of the same opinion, buy low - sell high. Low in this case is around 2200 and fade the approach towards 2800 until something changes drastically or market catches the wind of another bull phase.
Besides, it is handy to keep long term levels on radar if something blows up and we get an opportunity to get good stocks cheap. While 2200 is good support level
, for a stock which has shot up from 200 to 2800 in 5 years, it is certainly not a cheap level where you can load up and sleep well. That kind of support comes below 1400.
For right now, buy puts on the big bounce and rest will take care of itself.