Charts indicate more gains for Wipro, Mindtree; Infosys, TCS appear weak

Wipro and MindTree logged new life-time highs in trade on Thursday and can see further upside of up to 11 per cent

IT stocks were back to winning ways in trade on Thursday on the back of strong Q2 performance by Infosys, Wipro and Mindtree, thus in a way indicating that TCS performance was an one-off incident.

Wipro and Mindtree zoomed over 10 per cent each to fresh record highs, while Infosys gained as much as 4 per cent in early trade as the company raised FY22 guidance. To know more the results impact, click here.

Meanwhile, here's what the charts have to tell about these IT majors. For now, Tata Consultancy Services (TCS) and Infosys Ltd seem to be trading on a sluggish note, their reversal may see added interest by market participants.

Tata Consultancy Services (TCS)

Outlook: Weak until trades below Rs 3,750

Following the recent gap-down close in the range of Rs 3,900 to Rs 3,757, TCS has lost its positive bias, according to the daily chart. All the major technical indicators Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD) reflect weakness. Mostly MACD, which is drifting below the zero line suggesting strong downward pressure. In addition, as long as the stock trades below the crucial hurdle of Rs 3,750-level, the bearish sentiment may add selling interest. The immediate support exists at Rs 3,500-level.  CLICK HERE FOR THE CHART

 

Wipro Ltd (WIPRO)

Likely target: Rs 800

Upside potential:  11%

Wipro has conquered the major obstacle of Rs 690 with high volumes exhibiting further upside towards Rs 800 now. This up move has a medium-term support at Rs 644, which is its 50-day moving average (DMA). The immediate support comes at Rs 690-level. The MACD has turned up nearing the zero line, indicative of the positive momentum which re-affirms an upward direction. CLICK HERE FOR THE CHART

MindTree Limited (MINDTREE)

Likely target: Rs 5,000 and Rs 5,150

Upside potential: 5% to 7.50%

The shares of MindTree Limited had seen good accumulation around the support base of Rs 4,150-level. Now, backed by this lower side addition the stock saw an upward breakout with a gap-up rally. This momentum shows an uptick towards Rs 5,000 and Rs 5,150 levels, according to the daily chart. In the future, the immediate closing basis support for the stock will be at Rs 4,600. Although, the MACD trades in a negative crossover, any reversal may significantly add bullish momentum in the stock.  CLICK HERE FOR THE CHART

Infosys Ltd (INFY)

Outlook: Needs to sustain above Rs 1,775

Until the shares of Infosys Ltd do not aggressively sustain above Rs 1,775, the counter is likely to witness some selling pressure, according to the daily chart. On the downside, the stock has strong crucial support of Rs 1,650.  The immediate accumulation range comes between Rs 1,720 to Rs 1,700 levels, as per the weekly chart. CLICK HERE FOR THE CHART