Here's why Osho Krishan recommends buying TCS, IDFC First Bank

According to the technical analyst from Anand Rathi, TCS has corrected from its all-time high and is hovering near its 61.80 percent Fibonacci retracement suggesting strong support levels

BUY IDFC FIRST BANK LTD

TARGET: Rs 55

STOP LOSS: Rs 46

IDFCFRSTBNK has been hovering above the cluster of its exponential moving averages on the daily time frame indicating inherent strength in the counter. Also, the stock is on the verge of breakout above the Rs 51-mark and hence has been gaining momentum from the past few trading sessions. The stock has the strong support of an ascending trend line from the bottom suggesting demand at lower levels. From a risk-reward point of view, it is placed at a lucrative zone and is expected to outperform in near future.

BUY TATA CONSULTANCY SERVICES LTD

TARGET: 3700

STOP LOSS: 3350

TCS has corrected over 12 percent from its all-time high in a nascent duration and is hovering near its 61.80 percent Fibonacci retracement suggesting strong support at current levels. The stock has gained little traction in the last trading session near its 100 DEMA that historically has proved to provide resurgence in the counter. All these data suggest an early sign of reversal in the counter. Even from a risk-reward point of view the stock is placed at a quantifiable level and is expected to witness a trend reversal from here onwards.

Osho Krishan is senior manager – Equity Research at Anand Rathi Shares & Stock Brokers. Views are personal.