Nifty IT in pullback mode: Infosys, HCL Tech, KPIT can rally up to 15%

The Nifty IT index has recovered smartly from its September lows, and if the current momentum sustains select IT stocks could witness a medium-term bullish trend.

The Nifty IT index, so far in 2022, has significantly underperformed the benchmark indices, which have scaled fresh life-time highs in recent trading sesisons, including today.

On a YTD (Year Till Date) basis, the technology index has shed as much as 21 per cent so far, and was the lead sectoral loser. Further, the index has ended with losses in each of the last three quarters.

However, things seem to be turning around for the IT index. It has displayed a smart recovery and rallied 16 per cent from its September low. This steep run-up hints towards more upside for the Nifty IT index.

If this momentum holds, major shares from the IT space could eye medium-term bullishness. 
 

Here's a technical outlook on the Nifty IT index and select stocks for coming months:-

NIFTY IT INDEX

Upside potential: 33,000 and 35,000 

Likely target: 10% to15%
 

The Nifty IT index points to a breakout of the “Double Bottom” formation played out on the daily chart. If this move endures firm ground, short-to-medium term outlook for IT index would eventually see a bullish bias. With an immediate support of 29,000-mark, followed by 28,500-level, the index could see a jump to 33,000 and 35,000 levels, which mirrors 10 per cent and 15 per cent upside respectively.

The Relative Strength Index (RSI) is trading closer to the overbought territory but yet to enter, which denotes room for more upside. CLICK HERE FOR THE CHART

KPIT Technologies Limited (KPITTECH)

Upside potential: Rs 800   

Likely target: 12%

KPIT Technologies shares have broken out on the “Golden Cross” breakout, advocating more upside in coming sessions. Additionally, the present formation of “Higher High, Higher Low” has further strengthened the bullish bias. The bulls seem to be eyeing the Rs 800-mark, as long as support at Rs 650 and Rs 600 are held. The broader texture demonstrates that participants are taking keen interest in the stock, as the volume fluctuations on the daily chart favour a bullish side.  CLICK HERE FOR THE CHART

Infosys Ltd (INFY)

Likely target: Rs 1,875

Upside potential: 15%

Shares of Infosys have a positive divergence of RSI, with a “double bottom” breakout that emerged right after conquering the 200-day moving average (DMA) at Rs 1,560 mark. The present chart texture reflects a potential rally to Rs 1,875, closer to the all-time high of Rs 1,903. Now, along with the 200-DMA mark, the stock has a support at Rs 1,580 level.  CLICK HERE FOR THE CHART

Coforge Ltd (COFORGE)

Likely target: Rs 4,400

Upside potential: 10%

After gathering some ground near Rs 3,200 level on two occasions, first in June 2022 and then again in September 2022, Coforge has managed to deliver some respite. The stock now trades above the 200-DMA positioned at Rs 3,815. Moreover, it has lately seen bullish accumulation near Rs 3,600, which now becomes the key support. The 200-DMA continues to bolster the stock, which technically indicates an upside target of Rs 4,400 level. CLICK HERE FOR THE CHART

HCL Technologies Limited (HCLTECH)

Likely target: Rs 1,175 and Rs 1,250

Upside potential: 4% to 10%

The stock is up 8 per cent so far in November, and the momentum continues to outdo selling pressure on every successful upside. Evidently, the trend is buoyant which sets to scale higher levels with steady accumulation seen on smaller dips. The stock points at Rs 1,175 level, its immediate hurdle, which upon surpassing would lead to Rs 1,250 level. Supports for the stock can be expected at Rs 1,080 and Rs 1,050 levels. CLICK HERE FOR THE CHART

Persistent Systems Limited (PERSISTENT)

Likely target: Rs 4,400

Upside potential:   9%

Shares of Persistent Systems have broken out on the “Double Bottom” breakout, initiating a bullish bias for a medium-term outlook. As long as the support of Rs 3,600 is shielded, the trend would see added interest from the market participants. The immediate reach for the stock seems to be Rs 4,400 level, as per the daily chart. CLICK HERE FOR THE CHART