The Tata Consultancy Services (TCS) stock rose on Thursday ahead of the firm set to announce its Q4 earnings later in the day. At 12:24 pm, the stock was trading 1.60% or 50 points higher at Rs 3,209.90 on BSE. The stock, which opened higher at 3,175 level fell to intra day low of 3,166 level within minutes of trade.
The stock saw block deal worth Rs 17.13 crore on NSE at 10:10 am. The deal was carried out at 3,174.05 per share.
It rose further after the deal was executed.
The stock is up 39.12% during the last one year and is trading above its 50-day moving average of 2,975.99 and 200-day moving average of 2,689.67 level on BSE.
The IT major is the country's most valued firm with a market valuation of Rs 6,10,782.03 crore.
The stock closed 0.99% or 31 points higher at 3190 level on BSE.
Ruchit Jain, technical analyst at Angel Broking expects the stock to outperform and anticipates a target price of 3,350-3,400.
Jain said, "In the recent past, we have not observed any sudden jump in the volatility on the result day as some of its peer counters used to experience. But, there has been a typical behavior the stock has been following, which we believe would certainly raise the bar of expectations. The stock prices rallied quite steadily on previous occasions post the earnings and in the process, have been quite successful to give fair returns to its investors.
Although the broader trend for the stock remains positive, the stock prices have already seen a rally of more than 10% in this month of April. Hence, the risk reward ratio for creating fresh long positions does not seem to be that favorable as compared to few days back. Hence, we advise traders to adopt a 'Buy on dips' strategy for the counter and look to enter the stock on dips in the range of 3000-3050. From a medium term perspective, we expect this IT giant to continue the outperformance and we anticipate a target projection around 3350-3400."
The stock closed flat on Wednesday ahead of its quarterly earnings.
The stock ended at Rs 3,159.50, down 0.20 per cent on BSE. During the day, it lost 0.58 per cent to Rs 3,147.30.
On NSE, shares of the company settled 0.23 per cent lower at Rs 3,159.10.
TCS had late last month informed BSE that a meeting of the board of directors of the company is scheduled to be held on April 19, 2018 to approve and take on record the audited financial results for the year ending March 31, 2018.