Tata Consultancy Services Ltd. shares rose as much as 3.9% to Rs 2,335, even as the stock remained down about 25% over the past 12 months.
Trading volume in TCS was more than double its 20-day average, according to Bloomberg data. The move came after a two-day decline, based on the price action provided.
The rise in TCS also coincided with changes in its derivatives positioning. Data from the attached F&O screens showed short covering in the September and October futures contracts, while the November contract reflected accumulation.
Near-Term TCS Futures See Short Covering
The September TCS futures contract was classified under short covering, with the futures price at Rs 2,343.6, up 3.24%, while open interest fell 1.25%.
The October contract also showed short covering. Its futures price stood at Rs 2,345, up 3.23%, while open interest declined 2.69%.
The November contract, meanwhile, showed accumulation. The futures price was Rs 2,355.5, up 3.16%, while open interest increased 16.04%.
Options Positioning Concentrated Around Rs 2,300
The options data showed substantial open interest around the Rs 2,300 strike, with both call and put positions concentrated at that level.
Call open interest was highest around the Rs 2,300 strike, while put open interest was also concentrated at Rs 2,300. Put open interest was also significant at the Rs 2,800 strike.
The change in open interest showed a sharp reduction in call positions at the Rs 2,300 strike, while put positions increased at several strikes, including Rs 2,200 and Rs 2,300.
Analysts See Limited Upside From Last Regular Trade
Among analysts tracked by Bloomberg, 29 have a “buy” rating on TCS, while 14 have a “hold” rating and five have a “sell” rating.
The Bloomberg-tracked consensus target price stands at Rs 2,424.96, implying a potential return of 4.4% from the last regular trade.
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