Saturday, August 10, 2013

TCS- Short/Medium term trade idea

Scrip Name: TCS CMP :1845.4
Comment
Trade Check List
PRICE/BOOK
14.59
ADX level
9.86
5 & 14 day RSI Value
62, 72
Weight on BSE & NSE
11.56, 9.88
Support Level
1755.95, 1800.65
Resistance Level
1873.1, 1900.85
Action
Sell

Reasons to short TCS,

  1. High P/B ratio @14.59, CNX IT's P/B values is 5.55 as on 8-Aug-13. 
  2. RSI value indicates TCS at over-brought condition.
  3. ADX level indicates non-trending moment, and 
  4. TCS weight-age on  BSE & Nifty is >= 10 (high probability of selling might happen @ this condition).
My entry point: 1873-1900 range, and  stop-loss will be @ is previous all time high 1890. I'm looking for short to medium term trade in this setup.

PFB the chart for the same, 





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