Infy, TCS, Wipro, HCLT: Chart suggests up to 14% upside as stocks breakout

The Nifty IT index is likely to trade with a bullish bias as long as the index sustains above 36,950 levels, suggest the daily chart.

Shares of IT companies have rallied up to 17 per cent in the last two trading sessions post the announcement of Q3 results. Wipro has been the top gainer, while Infosys, HCL Technologies and TCS have surged in the range of 6 - 12 per cent.
 

Amid this frenzied rally, here's a quick chart check on the Nifty IT index and the key stocks for key levels to watch out for.

Nifty IT

Current Level: 37,610

Support: 36,950

Resistance: 38,900; 39,450

The Nifty IT index has rallied nearly 9 per cent in the last two trading sessions. The index has given a breakout on the daily chart, and is seen trading firmly above its higher-end of the Bollinger Bands. The near-term bias for the IT index is likely to remain bullish as long as the index sustains above 36,950 levels.

The weekly and monthly charts too paint a bullish picture, thus suggesting a likelihood of the index revisiting its peak of 39,450-odd levels, suggesting an upside of up to 5 per cent from present levels. In the interim, resistance for the index can be expected around 38,900 levels. CLICK HERE FOR THE CHART

Infosys

Current Price: Rs 1,650

Support: Rs 1,620

Resistance: Rs 1,740; Rs 1,880

Infosys is also seen trading firmly above the higher-end of the Bollinger Bands on the daily scale. The key momentum oscillators like the 14-day RSI (Relative Strength Index), MACD (Moving Average Convergence-Divergence) and Stochastic Slow are all in favour of the bulls.

As per the daily chart, the bias is likely to remain bullish as long as the stock trades above Rs 1,620 level. On the upside, the stock may face some resistance around its super trend line at Rs 1,740, beyond which it could journey all the way towards its peak at Rs 1,880-odd levels - an upside of nearly 14 per cent. CLICK HERE FOR THE CHART

TCS

Current Price: Rs 3,920

Support: Rs 3,910; Rs 3,770

TCS is seen trading close to its bullish pivot at Rs 3,910, the bias is likely to remain favourable as long as the stock sustains above this level. The longer-term chart suggests that the overall bias will remain positive as long as the stock holds above Rs 3,770. CLICK HERE FOR THE CHART

Wipro

Current Price: Rs 495

Support: Rs 490

Shares of Wipro have retraced sharply from its intra-day high of Rs 529, and presently seen testing support at its bullish pivot around Rs 490. As long as the stock holds this support, it may attempt to regain some of the day's lost ground.

Key momentum oscillators are mixed for the stock; hence it may exhibit some volatility in the near term. CLICK HERE FOR THE CHART 

HCL Technologies

Current Price: Rs 1,580

Support: Rs 1,550; Rs 1,482

In the short-term, HCL Technologies is likely to trade with a positive bias as long as the stock sustains above Rs 1,550. Similarly, the long-term chart suggests that the trend is likely to remain favourable as long as Rs 1,482 is held. CLICK HERE FOR THE CHART