These stocks command market-cap of over Rs 15 trn each. Can they rise more?

As per the technical charts, Reliance and TCS seem placed favourably on the charts; hence, the stocks could see further gains in the coming trading sessions.

After scintillating gains of near 19 per cent in the year 2023, equity benchmark indices have witnessed a volatile ride so far in 2024. 

Even as the BSE Sensex and NSE Nifty scaled fresh peaks at 73,428 and 22,127 so far this year, as this start there are more or less around previous years close as of Wednesday, February 07.

Meanwhile, index heavyweight Reliance Industries (RIL) which had a relatively sedate 2023, up 1.5 per cent for the year, has started 2024 on an upbeat note and so far rallied nearly 11 per cent in little more than a month. In the process, the RIL's market capitalisation had reached within striking of the Rs 20 trillion landmark earlier this month.

RIL is the most-value listed company in India in terms of market capitalisation. That apart, TCS is the only other company which commands a market cap of over Rs 15 trillion.

In 2023, TCS had more or less performed in line with the benchmark indices, and finished with a gain of around 16.5 per cent. In 2024 so far, the stock has vaulted over 9 per cent. On Tuesday, for the very first-time this Tata Group IT company topped the Rs 15 trillion mark.

Next in line in terms of market valuation stands HDFC Bank at the third position with a market cap of Rs 11 trillion.

As the case is market cap of any company of the underlying index is directly linked to the performance of the stock or index on the bourses. In simple term, market cap is calculated by multiplying the share price by the total number of shares outstanding. A rise in share price has a positive impact on the market cap.

So given this background, can the market cap of these two large-cap firms rise further?

Here's what the charts suggest on likely stock performance:

Reliance Industries

Current Price: Rs 2,878

Support: Rs 2,850; Rs 2,780

Resistance: Rs 2,920

Upside Potential: 6%

RIL has been trading in a rising channel since the breakout above its 50-DMA (Daily Moving Average) in mid-November. The uptrend remains solid, even as select momentum oscillators are showing signs of consolidation.

On the medium-term scale, the stock is seen facing some resistance around its monthly super trend line at Rs 2,920. Break and sustained trade above the same, can trigger a rally towards Rs 3,050.

In the near-term the stock is likely to find considerable support around Rs 2,850, below which it may dip towards its 20-DMA at Rs 2,780-odd levels. CLICK HERE FOR THE CHART

TCS

Current Price: Rs 4,142

Support: Rs 4,100; Rs 3,900

Upside Potential: 5%

TCS has given a fresh breakout on the daily scale. The near-term bias is likely to remain upbeat as long as the stock holds above Rs 4,100 level - i.e. the higher-end of the Bollinger Bands on the daily chart.

Further, the stock has also witnessed a breakout on the long-term charts, suggesting that the bias is likely to remain positive as long as the stock sustains above Rs 3,900. On the upside, the stock can potentially rally to Rs 4,325. CLICK HERE FOR THE CHART