In today’s analysis, I will cover numerous stocks and one cryptocurrency. The stocks on the radar are TCS (NS:TCS), HDFC Bank (NS:HDBK), Bajaj Finserv (NS:BJFS), and Bharti Airtel (NS:BRTI), while the cryptocurrency under review is Bitcoin.
The analysis of TCS is detailed in this article, whereas HDFC Bank, Bajaj Finserv, Bharti Airtel, and Bitcoin are covered in my latest YouTube video. These charts required a more in-depth analysis, which I felt was best conveyed through video format. For each stock, I have shared my equity and options trading strategies. As for Bitcoin, I have provided a fresh update as the trading plan I gave for it last Sunday worked perfectly. Also, subscribe to my YouTube channel as this week I will analyse the major companies releasing their results and share their trading strategies. These will include Reliance Industries (NS:RELI), Axis Bank (NS:AXBK) and Infosys (NS:INFY) to name a few.
TCS Analysis:
TCS announced its results on Thursday, which I analysed in Friday’s pre-market video. In that video, I highlighted that there was a strong resistance at ₹4,300 and this was correct. This is as TCS reached a high of ₹4,297, which is a mere 3 rupees away, after which it retreated.
What’s Next (LON:NXT) for TCS?
Now, as long as TCS trades below the resistance zone of ₹4,300–₹4,380, I expect it to remain range-bound. This is as I expect the stock to oscillate in a box range that uses the support at ₹4,100 and resistance at ₹4,380. However, if it breaks above ₹4,380, then we could see an upward move to ₹4,520 and ₹4,600. On the other hand, if it breaks ₹4,100, then we could see a downward move to ₹3,950 and ₹3,800.
My Trading Strategy:
On Friday, I shared that I held the same trades that I had given in my video on TCS in the end of December. These were Call Option (CE) sells above ₹4,200 and Put Option (PE) sells below ₹3,980. These positions were profitable as we held them for a while, and they had decayed well. Now on Friday, the CE sells hit the set profit stop which resulted in us netting 80% of the profits made. While the PE sells gained further profit, which prompted me to tighten the profit stop.
Moving forward, I plan to maintain the same PE sells below ₹3,980. But I will also enter fresh PE sells of below ₹4,100. However, I will only enter fresh CE sells if there are signs of weakness near the resistance levels mentioned above. For short-term equity trades, I would not consider them, as the current range is only favourable to option sellers. This is as I believe equity trades should only be considered above ₹4,380.
The Final Verdict:
TCS has performed precisely as anticipated. The stock now appears poised for a directional move if it breaks out of its current range. Equity traders should watch for a breakout above ₹4,380 for short-term opportunities. While option sellers have a plethora of opportunities available in the stock presently.
Happy trading!
YouTube video link - https://youtu.be/If5w3z3m3Dw
Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgement before making investment decisions. The information provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.