 "Bear Spread Strategy on Tata Consultancy Services by HDFC Securities")
Bear Spread strategy on TCS
Buy TCS March 1800 Put at Rs 113
Target 170
Stop Loss 70
Lot Size 250.
Rationale:
- Aggressive Short build up is seen in the TCS Futures’ where we have seen sharp rise (Prov) in the Open Interest with price falling by 9 per cent.
- Stock Price has broken down on the daily chart to close at lowest level since June 2018 with higher volumes.
- Primary trend of the stock turned negative where it is trading below its 5,20 and 200 day SMA.
- Oscillators and Momentum Indicators like RSI and MACD showing weakness in the stocks.
- Technology as a sector looking weak on the Charts
Disclaimer: Nandish Shah is a Technical & Derivative Analyst at HDFC securities. Views are personal.
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