Mindtree, Tech Mahindra: IT stocks that should be on your watchlist

Mindtree will see an upside bias once it breaks out above Rs 920 levels

Shares of information technology (IT) companies have failed to remain insulated from the coronavirus-led sell-off in Indian equity markets despite Rupee's fall. The Indian currency which settled at 71.29 against the US dollar on February 17 fell to its record low of 74.50 per dollar on March 13, 2020. Despite this, the Nifty IT index has fallen 26.12 per cent in the last one month as compared to 25.5 per cent dip in the Nifty50 index in the same period.

Here's how the major IT stocks look on the charts:

NIFTY IT: This index needs to hold above 13,200 to create a bullish sentiment. Every up move in the range of 12,800 to 12,600 may see strong selling pressure. Going forward, 12,000 should remain the immediate support. Only a close below 12,000 may see a downside rally towards 11,400 levels as per the daily chart. The overall view remains stable, however, one needs to be cautious on the index until some consolidation emerges. CLICK HERE FOR THE CHART

Infosys Ltd (INFY): The counter is falling continuously from the level of Rs 750 without any major reversal. The buying momentum has drained and if the stock does not close above Rs 600 decisively, the downside rally may extend towards Rs 520 levels. The overall trend remains weak and any downside may trigger bigger selling pressure.  CLICK HERE FOR THE CHART

MindTree Ltd (MINDTREE): The counter witnessed a positive close in the last three sessions. That said, it is witnessing selling pressure above Rs 880 levels. Any major upside is expected to emerge above Rs 920 levels. On the other hand, support remains at Rs 760. The overall trend indicates an upside bias which may trigger breakout above Rs 920 levels. The weekly chart indicates bearish trend only below Rs 700 levels. CLICK HERE FOR THE CHART

Tata Consultancy Services Ltd (TCS): The counter is showing only one gap-down close that needs to be filled for a bullish view. The underneath strength of the counter remains strong till gap down sessions do not arise. The major support stays in the range of Rs 1,500 -1,550 levels. The first signal of recovery may begin when the counter starts closing above Rs 1,750 levels. Till then, the trend holds positive bias and every correction towards Rs 1,500 may see some buyers. CLICK HERE FOR THE CHART

Wipro Ltd (WIPRO): The counter is trading with a bearish bias as major support levels in the range of Rs 200 to Rs 190 have been broken decisively.  Major technical indicators Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are trading in overbought conditions without any signs of reversals. The last five sessions have seen normal volumes, however, the price has corrected which in itself is a sign of a weakness. If Rs 170 gets breached, then a downside rally towards Rs 150 may be seen, as per the daily chart. CLICK HERE FOR THE CHART

Tech Mahindra Ltd (TECHM): The counter is showing buying momentum in the range of Rs 550 – Rs 580 levels. Till this range is held, the upside bias may strengthen. Although the technical indicators, RSI and MACD, are trading with a weak sentiment, the price is still holding the support levels. CLICK HERE FOR THE CHART