In-house view

Tata Consultancy Services – Strong all-round performance; estimates beaten

In view of the better-than-estimated Q2FY10 results and the high likelihood of EBITDA margins sustaining in the 26-27% range, we are increasing our estimates for FY10 and FY11 by 4.4% and 8.4% respectively. We also increase our target price to Rs 694, 19.5x its FY11 earnings. Maintain Buy.

Market outlook

We are positive on our market for today. While we expect the market to open down, we see a rally in the latter part of the day.

Derivative trends

F&O synopsis

Markets expected to trade between 5071-5031 on the lower side while resistance lies between 5123-5149.

Market view: - Volatile.

Sector-specific: IT stocks appearing positive.

Stock-specific: IOB, ITC, Infosys appearing positive.

Technical analysis

Sensex Intraday Support levels: Support 17126-17092-17021                                  Resistance 17457-17512

Nifty Intraday Support levels: Support 5100-5077-5054                                            Resistance 5182-5220

To read the full report: MARKET PREVIEW