In an interview with CNBC-TV18, market expert Ashish Kyal from Waves Strategy Advisors shared his insights on Tata Consultancy Services (TCS), Federal Bank, Zomato, and SBI Life.

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Regarding TCS, Kyal noted a significant bullish candle formation with a notable increase in trading volume. This positive movement follows a period of negativity in the IT large-cap space, while the mid-cap IT sector had already shown considerable activity. Now, the large-cap segment appears to be on an upward trend, and sellers are likely to face consequences.

Kyal believes that Tata Consultancy Services is poised to reach the Rs 3,550 level. In his opinion, it is currently the best time to buy this stock, as trading volumes are expected to increase and more investors will likely rush to purchase IT stocks.

He also predicts that the overall IT sector will outperform, suggesting that long positions can be established in TCS with support at around Rs 3,240. Furthermore, he expects TCS to surpass the Rs 3,550 mark. Kyal maintains a bullish view as long as today's low remains protected. Share has gained more than 3 percent in the past month.

Turning to Federal Bank, Kyal observes a sharp downside reversal, with the stock declining from a high of Rs 135 to a low of Rs 128. This stands in contrast to the positive movement in the banking index, with the Bank Nifty registering a nearly 1 percent increase.

The reversal in Federal Bank is not a positive sign, leading Kyal to consider any movement toward the Rs 132 mark as an opportunity to sell or take short-term positions for a move toward Rs 127, which aligns with the 20-day average. The stock is up more than 3 percent in the last month

In the case of Zomato, the stock has been consolidating within a range of Rs 73 as a resistance and Rs 46 as a support for nearly a year. However, it has recently broken out of this range on the upside, indicating a positive breakout. The weekly chart of the past four weeks also shows consolidation and confirms the breakout in today's session.

Kyal maintains a bullish outlook for Zomato, suggesting a target of Rs 86 and a support level of around Rs 76. He advises caution when trading new stocks, as reversals can occur swiftly. It is crucial to establish a strict stop loss in case the Rs 76 level is breached, as it could pose a risk. Share of Zomato has gained more than 4 percent in the past month.

Moving on to SBI Life, Kyal highlights the stock's gradual upward movement while consistently staying above the 20-day average. Although it may not be receiving much attention from investors, it is steadily climbing. Kyal recommends establishing long positions in SBI Life, targeting Rs 1,425 with a stop loss set at Rs 1,285. The stock is up more than 6 percent in the last month.

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First Published:Jul 13, 2023 1:26 PM IST