Here's why Mehul Kothari recommends buying TCS, L&T Technology Services

According to the technical analyst from Anand Rathi, TCS can target Rs 3,200 on the upside, while L&T Technology Services can rally to Rs 3,450.

L&T Technology Services (LTTS)

BUY

Buy Above: Rs 3,200

Target: Rs 3,450

Stop Loss: Rs 3,050

Similar to other IT stocks, LTTS too has been trading in a bit of oversold conditions. On the daily chart, the price structure indicates that the stock is on the verge of a breakout which resembles an inverse head and shoulder pattern. The breakout would be confirmed above Rs 3,200 mark.

Thus, we advise traders to buy the stock above Rs 3,200 for an upside target of Rs 3,450 in the coming sessions.

TCS

BUY

Buy Near: Rs 3,050

Target: Rs 3,200

Stop Loss: Rs 2,950

TCS has been an outperformer during the recent crack in IT stocks. The stock fell the least in comparison to most of the peers. On the daily chart, we are witnessing a hammer formation followed by a green candle. This indicates a possibility of bounce.

Thus, we advise traders to buy the stock near Rs 3,050 mark for an upside target Rs 3,200 in the coming sessions.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).