Coforge, Mindtree: Tech charts show short-term rebound in mid-cap IT stocks

Select mid-cap IT stocks may surge up to 10 per cent on short-term rebound

Tech stocks globally have been roiled in the market meltdown since the start of 2022. The Nifty IT index, too, has lost 22 per cent so far in the current year on the National Stock Exchange (NSE), and is showing no signs of recovery. In May alone, the index has tumbled 13 per cent. 

However, technical charts show the continued sell-off may see a short-term bounce back, especially in the mid-cap IT stocks.

Here's how to trade related stocks: 

Tata Elxsi Ltd (TATAELXSI)

Likely target: Rs 8,000

Upside potential: 9%

Tata Elxsi has shed 20 per cent from its all-time high recorded in late March 2022. However, after hitting a low of Rs 6,432 recently, the stock is up 15 per cent, and is sustaining above Rs 7,000 levels. The immediate hurdle comes at Rs 7,800 and upon decisively conquering the same, the stock could see higher levels of Rs 8,500, which is its crucial resistance. CLICK HERE FOR THE CHART

Coforge Ltd (COFORGE)

Likely target: Rs 4,000

Upside potential: 6%

While the shares of Coforge are trading with "Lower High, Lower Low" formation, the stock is seeing support around Rs 3,600. Thus, as long as this support is held, the positive bias could revive towards Rs 4,000-mark, its next big hurdle, according to the daily setup. In addition, the Relative Strength Index (RSI) has seen rebound twice close to value of Rs 30, adding to the positive bias. CLICK HERE FOR THE CHART

KPIT Technologies Limited (KPITTECH)

Likely target: Rs 550

Upside potential: 10%

As of today, the stock is holding the support of 200-day moving average (DMA), as per the daily chart. The strength and momentum continue to persist near the 200-DMA, at Rs 475.80. And if the stock manages to defend the mark, one cannot neglect a short-term rebound. The major hurdle stands at Rs 550 levels. CLICK HERE FOR THE CHART

Oracle Financial Services Software Limited (OFSS)

Likely target: Rs 3,600

Upside potential: 9%

Shares of OFSS indicate support in the range of Rs 3,200 to Rs 3,100 levels. This is the third time when the counter is not letting the support get dismantled. The stock showed a smart recovery near the same range in the month of January and then in March 2022. Thus, until this range does get violated on an aggressive basis, the stock may show a firm reversal, as per the daily chart. Additionally, a decisive close above 100-DMA, positioned at Rs 3,464, may trigger fresh buying momentum and the stock may see Rs 3,600 levels.  CLICK HERE FOR THE CHART

Mindtree Limited (MINDTREE)

Likely target: Rs 3,200

Upside potential: 5.50%

After shattering 200-DMA with an aggressive sentiment, Mindtree shares witnessed a steep fall. The stock trades over 25 per cent lower from the 200-DMA level of Rs 4,055. Such a drastic collapse is set show rebound considering RSI is in the overbought category consecutively since the past four sessions. The support comes at Rs 2,750 and one can anticipate a rally towards Rs 3,200 levels. CLICK HERE FOR THE CHART