IT shares have been in limelight for the last one-and-half month with
Nifty IT surging up to 8 per cent as against a 5.3 per cent rise in the Nifty 50 index.
Among Nifty IT stocks, Persistent Systems has soared 27 per cent since the start of October till date. HCL Technologies, Coforge and LTIMindtree have rallied 12 - 15 per cent; while TCS, Mphasis, Infosys and Tech Mahindra have gained 3 - 8 per cent in the same period.
Here's a technical outlook on Nifty IT and key stocks post the recent 8 per cent rally.
Infosys
Current Price: ₹1,498
Likely Target: ₹1,607
Upside Potential: 7.3%
Support: ₹1,492; ₹1,474; ₹1,430
Resistance: ₹1,540; ₹1,565
Infosys stock recently tested the 200-Day Moving Average (200-DMA) after a gap of 10 months. The daily chart shows that the stock is seen trading in a rising channel, which indicates resistance around ₹1,565 and support near ₹1,430.
At present, Infosys is testing 20-DMA support at ₹1,492, with strong support visible at ₹1,474. On the upside, breakout above the 200-DMA at ₹1,540 can trigger a rally towards ₹1,607.
Nifty IT
Current Level: 36,190
Likely Target: 38,100
Upside Potential: 5.3%
Support: 36,000; 35,800; 35,323
Resistance: 36,961; 37,150; 37650
Despite the 8 per cent rally, the price-to-moving averages action remains neutral for the IT index, as the benchmark holds above short-term moving averages, but below long-term averages.
Having said that, the short-term trend is likely to be cautiously optimistic above 35,323 with intermediate support at 36,000 and 35,800. Breakout above the 200-DMA at 36,961 can help the index gain strength. On the upside, the IT index may rally to 38,100, with interim resistance likely around 37,150 and 37,650.
Tata Consultancy Services (TCS)
Current Price: ₹3,090
Likely Target: ₹3,310
Upside Potential: 7.1%
Support: ₹3,050; ₹2,975
Resistance: ₹3,100; ₹3,190; ₹3,240
TCS share is likely to trade with a cautiously positive note above ₹2,975, with near support at ₹3,050. The stock is seen testing 100-DMA resistance at ₹3,100; above which it can spurt towards its 200-DMA at ₹3,310, with interim resistance likely around ₹3,190 and ₹3,240.
HCL Technologies
Current Price: ₹1,591
Likely Target: ₹1,860
Upside Potential: 16.9%
Support: ₹1,526; ₹1,517
Resistance: ₹1,630; ₹1,700
HCL Technologies stock is seen trading above its 200-DMA for the last five trading sessions. The stock is likely to target ₹1,860 on the upside, with interim resistance around ₹1,630 and 1,700. The 200-DMA at ₹1,536 and trend line support at ₹1,517 likely to act as key supports.
Wipro
Current Price: ₹244
Likely Target: ₹226
Downside Risk: 7.4%
Support: ₹236; ₹233
Resistance: ₹247; ₹248; ₹254
The near-term bias for
Wipro stock is likely to remain tepid as long as the stock trades below ₹247 - ₹248 resistance zone. Above which, the 200-DMA at ₹253 will be the key hurdle. The stock is trading in a tight range, with near support around ₹236 - ₹233; below which it can dip towards the 200-Week Moving Average (200-WMA) at ₹226.
Tech Mahindra
Current Price: ₹1,448
Likely Target: ₹1,360
Downside Risk: 6.1%
Support: ₹1,425; ₹1,390
Resistance: ₹1,457; ₹1,489; ₹1,499
Tech Mahindra share is seen trading near its short-term hurdle at ₹1,457; above which the 100-DMA and 200-DMA at ₹1,489 and ₹1,499 are likely to act as key hurdles. On the other hand, the stock is attempting to form a support base around the 100-WMA at ₹1,425. In case of weakness, the stock may fall to ₹1,360, with interim support likely at ₹1,390.
 "Infosys, TCS, HCL Tech: Nifty IT up 8% since Oct; time to buy or sell?")
