Infosys, TCS, Wipro: Here is how to trade IT stocks post Q4 results

The Nifty IT index may witness a major upward trigger after a strong close above 13,000-mark

Shares of IT companies such as Infosys, Tata Consultancy Services (TCS), and Wipro were trading in the negative territory on Tuesday, a day after Infosys refrained from providing growth projection for FY21 during its March quarter results announcement, in line with its peers, owing to uncertainties around the Covid-19 pandemic. Further, investor sentiment also took a hit after US President Donald Trump announced a temporary suspension of immigration into the country. 

Here's a look at what technical charts indicate for Nifty IT and key stocks - 

NIFTY IT: The counter is waiting for a breakout above 13,000 levels on a closing basis. On several occasions in recent sessions, the index made efforts to conquer this level, however fell short to do so. A major upward trigger may be waiting after a strong close above this mark. On the other hand, the support remains at 12,500 and 12,000 levels. If the index manages to conquer 13,000 levels, an “ascending triangle” formation may lead to 13,800 and 14,200 levels. CLICK HERE FOR THE CHART

Infosys Ltd (INFY): The counter is witnessing selling pressure in the range of Rs 680 to Rs 660 levels as per the daily chart. The trend remains optimistic till the price trades above Rs 600 levels. Moving Average Convergence Divergence (MACD) is rising towards the zero line, which suggests that if zero line gets crossed, then the next upside may see volume-based momentum. CLICK HERE FOR THE CHART

Tata Consultancy Services Ltd (TCS): The current level is indicating a positive bias that needs to overcome the range of Rs 1,890 to Rs 1930 levels, an immediate selling range, as per the daily chart. Upon this, a rally towards Rs 2,050 and Rs 2,100 cannot be neglected. The overall trend remains positive with support from Relative Strength Index (RSI) and MACD, which are hinting an upward sentiment. The immediate support comes in at Rs 1,725, while the second support is seen at Rs 1,650 level. CLICK HERE FOR THE CHART

Wipro Ltd (WIPRO):  This counter has shown a decent reversal from Rs 160 levels. However, the current momentum indicates its inability to cross the selling pressure level of Rs 200 on closing basis, as per the daily chart. The support remains at Rs 175 level, a breakdown may induce negative sentiment and the counter may test the reversal level of Rs 160.  The RSI has made a negative crossover suggesting that the strength is weakening. CLICK HERE FOR THE CHART