Infosys, Wipro, TCS: Should you sell IT stocks as Trump blocks H1B visa?

The Nifty IT index now needs to scale above its 200-DMA placed at 14,888 to embark on a new trend

US President Donald Trump has suspended the entry into the United States of certain foreign workers on Monday - a move the White House said would help the Covid-19-battered economy. 

The visa suspension, which runs to the end of the year, will open up 525,000 jobs for U.S. workers, a senior administration official said on a call with reporters. READ MORE HERE

So, how should you trade information technology stocks in this backdrop? Here are the key levels you need to keep a tab on.

NIFTY IT: The index is trading between 200-days moving average (DMA) and 100-DMA, as per the daily chart. The last five sessions had seen sideways movement. The index now needs to scale above its 200-DMA placed at 14,888 to embark on a new trend. Both the technical indicators, Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are trading with a negative crossover, suggesting a weak trend. Till the index stays above 100-DMA placed at 14,250 levels, the upward bias should prevail. CLICK HERE FOR THE CHART
 
Infosys Ltd (INFY): As this counter has moved above its 200-DMA again, sustainability remains a question. Going forward, Infosys needs to cross Rs 720, which is acting as an immediate resistance. The trend looks mixed as a continuous upside or downside over a few sessions has not appeared yet. The downside is capped at the support of 100-DMA placed at Rs 682 levels. CLICK HERE FOR THE CHART
 
Wipro Ltd (WIPRO):  The next upside for this stock can only be possible if it moves above the 200-DMA placed at Rs 226.80 levels. The overall trend remains positive bias as most of the correction has witnessed buying at lower levels, as per the intraday chart. The 100-DMA located at Rs 207 remains a key support. The volumes have remained subdued, which should rise if the counter manages to conquer the 200-DMA. CLICK HERE FOR THE CHART
 
Tech Mahindra Ltd (TECHM): This counter has not been able to move above the 50-DMA, as per the daily chart. The immediate support remains at Rs 540 on closing basis with resistance falling at Rs 565 levels. The overall trend will remain positive till the counter holds Rs 534, which is its 50-DMA.  CLICK HERE FOR THE CHART
 
Tata Consultancy Services Ltd (TCS): TCS is currently hovering around its 200-DMA, with technical indicators like RSI and MACD indicating weakening. On the other hand, the 50-DMA is on the verge of making a positive crossover with 100-DMA. If that happens, then a positive momentum may emerge that can take this stock higher. The current resistance remains above Rs 2,100 levels. CLICK HERE FOR THE CHART
 
NIIT Technologies Ltd (NIITTECH): As this counter has made a negative crossover of 100-DMA with 200-DMA. This suggests that the upside remians capped. However, the price is not showing any deep correction, but it is holding the support of 50-DMA placed at Rs 1,289 levels. The major upside is possible if the resistance of Rs 1,420 is breached, which is its 200-DMA. CLICK HERE FOR THE CHART