Infosys, TCS, Wipro: Do IT stocks have more steam left? What charts say

Unlike the benchmark Nifty 50, the Nifty IT index is still over 9 per cent shy from its summit. Among the frontline stocks, Infosys, TCS and Wipro look fairly placed on the charts.

The Nifty IT index zoomed over 8 per cent in the previous two trading sessions after the US Congressional Budget Office projected that the US economy was on track to avoid a recession next year, as inflation returns to normal. Further, the US Federal Reserve signalled three rates cuts next year, thus aiding the up move.

While, the IT index was the major contributor for the market rally last week, unlike the benchmark or broader indices, it is still quite far (more than 9 per cent) from its all-time summit.

Will the current momentum, help the Nifty IT index scale newer heights? Do the IT heavyweights have enough fire power to do so? 

Here's what the charts suggest:

Nifty IT Index

Current Level: 35,589

Support: 35,100; 35,075

Resistance: 38,850

The Nifty IT index is trading on a buoyant note on the daily and the weekly time-frame. As per the daily chart, the bias for the index is likely to remain bullish as long as the IT index sustains above 35,100-level. Similarly, the key support on the weekly chart stands at 35,075.

On the monthly scale, the Nifty IT index may counter some resistance around 35,850 levels, which is where the super trend line exists. Once this hurdle is conquered, the IT index may well continue its rally towards a new all-time peak. CLICK HERE FOR THE CHART

Infosys

Current Price: Rs 1,573

Support: Rs 1,550

Resistance: Rs 1,605; Rs 1,740

Infosys is likely to trade with a positive bias as long as the stock holds above Rs 1,550, suggests the daily and the weekly chart. Further, the key momentum oscillators on the monthly chart have just turned favourable, thus indicating that the undertone may remain positive for quite some time.

On the monthly scale, the stock has near resistance at Rs 1,605, above which the next major hurdle is seen at Rs 1,740 - the super trend line resistance. As and when that is taken out, the stock may look to surpass its summit at Rs 1,850. CLICK HERE FOR THE CHART

TCS

Current Price: Rs 3,870

Support: Rs 3,805

Just like the Nifty IT index and Infosys, TCS too is trading above the higher-end of the Bollinger Bands on the daily and weekly scale. The stock is likely to trade with a positive bias as long as it sustains above Rs 3,805 levels. However, unlike the former two, TCS has already scaled a fresh high and also trades firmly on the monthly scale.

The longer-term chart indicates that the trend for the stock is likely to remain bullish as long as it holds above Rs 3,650 levels. As the stock trades in unchartered territory, it may look to cross the Rs 4,000-mark on the upside. CLICK HERE FOR THE CHART

Wipro

Current Price: Rs 450

Support: Rs 445
Resistance: Rs 480

Last week, Wipro witnessed a massive breakout as the stock conquered its 100-WMA (Weekly Moving Average) after a gap of 19 months. The stock is now trading firmly above all its key moving averages on the daily and weekly charts. 

Earlier until October end, the stock has a massive underperformer since 2021, having shed almost 46 per cent of its value. However, key momentum oscillators too have turned on the monthly scale, thus indicating a likely favourable trend going ahead.

The daily chart suggests that the short-term trend is likely to remain positive as long as the stock holds above Rs 445. Sustenance above Rs 451 level can further strengthen the uptrend shows the weekly chart. Meanwhile, some resistance for the stock can be expected around Rs 480 levels, above which the stock can potentially jump to Rs 550 levels. CLICK HERE FOR THE CHART