Technical Analysis TCS

The stock

is daily chart for the most striking feature is the severe steep downtrend playing out recently. After trading in a higher range and forming a distribution pattern the stock has experienced a massive breakdown. It has dropped sharply to the current level of around 2390 INR. This is a classic falling knife scenario dominated by aggressive bearish momentum. Support the price is currently in a free-fall state having broken through several recent support floors. Looking to the left of the chart at historical price action from late 2020 the next major structural support zone appears to be around the 2100 to 2150 mark. Your crosshair correctly highlights a potential resting area near 2139.60. Resistance any upward bounce right now will likely face heavy overhead supply. Previous support levels will now act as resistance starting at the 2600 mark and extending heavily up to 2800. Short-Term buyers avoid buying right now as stepping into this aggressive downfall is highly risky and like catching a falling knife. Wait patiently for the price to completely stabilize and show a clear upward reversal pattern before taking any new positions. Short-term holders the current trend is heavily against you with strong selling pressure and high volume. Keep a strict watch on the next major support zone around the 2100 to 2150 levels and consider using any temporary upward bounce to exit or reduce your position to manage your risk. Technical analysis is based on historical patterns and does not guarantee future results. Always use a Stop-Loss to manage your risk.