SELL, between Rs1,162-1,166, Target Rs1,112

TCS (SELL, between Rs1,162-1,166, Target Rs1,112): TCS on the daily chart has retreated from the ‘falling resistance’ turning earlier breakout as ‘whipsaw’. The falling resistance line also converges with 50-DMA and 100-DMA which are considered as medium term resistance and close below same has reinforced negative view in the counter. The strength on daily RSI has been faltering with RSI testing its moving average from below and most importantly the RSI is trading below the support mark of 50.  The support trend line extended from the trough of Rs1,145 in April and Rs1,110 in May  gives immediate target of Rs1,100 in the near term. The daily MACD also continues to remain in the sell mode thus corroborating negative view in the counter. We advise going short on TCS May Fut with stop loss of Rs1,187 for Target of Rs1,112  (Duration 6 days).