TCS After result

Be my Guru yasir and teach us to do the same

Dear Ravi,

Thank you for the confidence you have shown in me and the high position that you are according me. The title of 'Guru' is not one to be used or taken lightly by me!

I however feel I am not worthy of the same. It is best you learn from my guru sagi.thediceman too and regard me as an equal, not above you.

Peace,
Yasir

Dear ravi06,

Please take a look at the daily chart or the histrical price of TCS for the past 6 months.

http://www.indiabulls.com/equities/t...asp?symbol=TCS

On march 6th 2007, the stock made a high of 1335. After this high, the stock has fallen sharply to recover by the 23rd of march 2007 but failed to surpass the previous high. Hence 1335 is considered a resistance. Every time the stock touch or goes close to this level, the resistance gets stronger.
We can find 2 more instances of this 1315 on april 17th and 1329.9 on may 4th.
After may 4th, the stock has been falling steadily and during this fall, there were times when the stock tried to move up only to fall back after a small upmove and continued the down trend.

From Mid May onwards, the stock has hit 1250 from below and fallen back each time.

On July 13th, TCS made a high of 1261 intraday but fell back and closed low. 1250 / 1260 is a resistance.

From june 15th on wards, the stock fell sharply but bounced to touch a high of 1200 and fall back gain. This is an important level.

So now we have medium term resistances of 1200/1250/1260.

On March 5th, TCS touched a low of 1150 after which, it hasnt fallen below that level for a long time - until June 19th. Subsequent to this,the stock fell further to 1117 on June 26th and bounced back to 1156 on June 29th only to fall further to 1100.
From the above, we can see 1150 was support below which the stock did not fall until june 19th. when support is broken, it becomes a resistance as can be see on June 29th the stock could not move above 1156 and fell lower to 1100.

After this, the stock has touched a low of 1100 two more times but always moved up and closed higher. Hence 1100 is now our long term support.

When TCS fell from 1261 on July 13th, the lowest it went to was 1114 (around our previous support of 1117) and then moved up again.

Hence we now have short term support at 1114 / 1117 and long term support at 1100.

From all of the above, we can deduce that there is support at 1114 / 1117 and 1100.
The resistances are at 1200/1260/1275/1315.

When a stock closes above resistance with good volumes, the resistance becomes support and the stock moves further upward to the next higher resistance.

Similarly, when a stock closes below support, the support becomes resistance and the stock moves further down to the next lower support.

If you have any questions, please feel free to ask.

Peace,
Yasir

well...well it is some detail....Since i am unable to figure out the supports and resistances it is hard for me to understand this...i go with company fundamentals when i buy the stock...And it has been paying off so far...But I Would wish to learn these technicalities.
Thanks for the analysis though.

Hi Ravi,

If you are serious about learning, please write to sagi on sagi.thediceman@*************

Peace,
Yasir