tcs share price: Big Movers on D-St: What should investors do with TCS, Infosys and Dr Reddy’s Laboratories?

Sectorally, buying was seen in healthcare, IT, auto and metals while selling pressure was visible in utilities, power, public sector and FMCG.

Stocks that were in focus including names like TCS and Infosys which closed higher ahead of results while Dr Reddy’s Laboratories rose more than 2% to hit a fresh 52-week high on Wednesday.

Here’s what Naveen Mishra, Senior Research Analyst – Equity Research at CapitalVia Global Research Ltd recommends investors should do with these stocks when the market resumes trading today:

TCS: Buy on dip
TCS which is backed by the Tata Group reported its quarterly financial results post market hours on Wednesday.

Technically, the long-term outlook is bullish. Despite the recent sideways to positive movement, long-term investors can still use the buy-on-dip strategy.

A decent entry point might be close to Rs 3100, and Rs 2950 could serve as a crucial support level. The level of 3500 can act as a resistance level on the higher side.Infosys: Buy on dip
Infosys Q4 Results will be out on Thursday. As per media reports, the March quarter’s net sales may increase. Infosys may provide revenue growth guidance of 5 to 8% in CC Terms and EBIT margin guidance of 21 to 23%.

On the charts, the long-term trend is bullish, but it has been in a downtrend since last year. Technically, it seems the correction is completed.

On the weekly chart, it is trading above the 200-EMA. So, with a stop loss of 1265, it might be a good opportunity to buy Infosys in the range of 1360-1380.

The level of Rs 1525 and then 1640 levels are likely to be resistances on the higher side.

DrReddy: Buy on dips
Dr Reddy’s reached a new 52-week high of 4119.60 and is on track to end the fifth straight week in the green.

Since last year, it has moved in a range, but during the past few weeks, it has made excellent progress, supported by the positive movement in the pharmaceutical sector.

Technically, its previous resistance of 4650 can act as a support level and on the higher side, the level of 5000 can act as a psychological resistance. The buy-on-dip approach should be used.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of Economic Times)