Hexaware Tech, Wipro: Are IT stocks a safe bet in the current market?

Information technology (IT) stocks were trading mixed on Wednesday. The Nifty IT index was down 0.6 per cent at 18,409 levels as compared to around 1 percent fall in the Nifty50 index. On a year-to-date (YTD) basis, the Nifty IT index has outperformed the market by surging nearly 18 per cent (as of Tuesday's close) as compared to a 7 per cent fall in the benchmark Nifty50, ACE Equity data show.

Among individual stocks, Hexaware Technologies was up over 1 per cent at Rs 420 as the company's buyback offer for delisting started today. Wipro, too, was trading in the green after the company on Tuesday announced plans to set up a Digital Innovation Hub in Düsseldorf, Germany. On the other hand, Tata Consultancy Services (TCS), on Tuesday, had hit a fresh record high of Rs 2,389.50.  

Here's a look at what charts indicate for Nifty IT and its key constituents.

NIFTY IT INDEX: The index is exhibiting the strength and momentum required to absorb selling pressure in the range of 18,400 to 18,500 levels. The index can scale up towards 19,100 levels. In the short-term, however, it is likely to consolidate, the daily chart suggests. The support comes in at 17,900 levels.  CLICK HERE FOR THE CHART
 
Tata Consultancy Services (TCS):  Making a positive crossover after a strong decline near the zero line, the Moving Average Convergence Divergence (MACD) clearly reflects an upside trend. It has also conquered the resistance of Rs 2,350 decisively. The immediate support comes in at Rs 2,250 with the charts suggesting a rally towards 2,500 levels in the sessions ahead. CLICK HERE FOR THE CHART
 
Infosys Ltd (INFY): Infosys needs to firmly cross the resistance of Rs 950 on a closing basis, as per the daily chart, for the next leg of up move. Once that happens, the stock may hit Rs 1,040 levels. On the downside, the support comes in at Rs 900 levels. The trend stays sideways for now.  CLICK HERE FOR THE CHART
 
Wipro Ltd (WIPRO):  Once the stock is able to overcome Rs 290, it may see then go on to hit Rs 310 in the days ahead, the daily chart suggests. The support comes in at Rs 280 levels. Both the technical indicators, Relative Strength Index (RSI) and MACD, are indicating a positive momentum for now with their respective upward crossovers. CLICK HERE FOR THE CHART

Tech Mahindra Ltd (TECHM): A “Golden Cross” of 50-day moving average (DMA) with 200-DMA reflects underlying strength and should propel the stock above Rs 770 levels in the sessions ahead. The current trend remians positive. A closing basis support is placed at Rs 720 and may see the counter cross its resistance of Rs 770 and move towards Rs 840 levels.  CLICK HERE FOR THE CHART
 
Hexaware Technologies Limited (HEXAWARE): The overall trend for this counter looks promising as a successful “Golden Cross” earlier and a positive crossover of 100-DMA with 200-DMA  now has added the strength amid firm support levels. The stock is heading towards Rs 445 and then Rs 460 levels. The immediate support is at Rs 400 and then at Rs 385 levels. CLICK HERE FOR THE CHART