Infosys, TCS: Is the worst over for IT stocks? Here's what charts say

Barring Wipro, all the other major tech companies have outperformed the benchmark Nifty50 index which has slipped 7.6 per cent till date in 2020

The Nifty IT index has bounced back smartly from the lows hit in February-end. In fact, barring Wipro -- which has slipped 7.66 per cent-- all the other major tech companies have outperformed the benchmark Nifty50 index which has slipped 7.6 per cent till date in 2020. Infosys gained 2.94 per cent while Tech Mahindra and TCS were up 1.18 per cent and 4 per cent, respectively, in this period.

Here's how the major IT stocks look on charts and how you can trade them -

NIFTY IT INDEX: The index has filled the gap down range of 16.053 to 15,788 levels. The low of the gap down candle was not breached, which shows strength and support of 15,000 levels. As the index moves towards 16,200, which is its 50-day moving average (DMA), mild resistance may emerge. The next crucial level to be conquered is 16,300 levels. The overall trend remains bullish and any correction may see buy strength. CLICK HERE FOR THE CHART

 

Infosys Ltd (INFY): Although the counter breached 200-day moving average (DMA), it did not show any aggressive sell-off thereafter.  As it gets closer to 50-DMA placed at Rs 767, mild selling pressure may be seen. That said, if it manages to conquer Rs 780 in Thursday's session, then a rally towards Rs 792 is expected. The support remains at Rs 740 on a closing basis.  CLICK HERE FOR THE CHART

 

Tech Mahindra Ltd (TECHM): The counter witnessed buying strength in last Friday's intra-day session when the counter breached 200-DMA. The session ended with a close well above 200-DMA, placed at Rs 737.30 levels. The immediate session followed reversal with a positive close indicating upward bias. The current levels indicate further upside as Relative Strength Index (RSI) has risen above the overbought condition decisively. A rally towards Rs 793 -- which is its 50-DMA -- is expected. The support remains at Rs 740 levels. CLICK HERE FOR THE CHART

 

Wipro Ltd (WIPRO): The counter has filled the gap down range of Rs 230.50 to Rs 229.50 witnessed during the recent correction. This move acknowledges the underlying strength of the counter. Although, the volumes have remained subdued, the RSI has made a positive crossover, signaling positive stance. Here onwards, any correction may see buying opportunities with a rally aimed at Rs 240 levels. CLICK HERE FOR THE CHART

 

Tata Consultancy Services Ltd (TCS): The current prices are hovering around 200-DMA placed at Rs 2,125 levels. This average may act as mild resistance. However, if the counter manages to close above Rs 2,130, then further upside may be witnessed till Rs 2,165-Rs 2,190 levels. The support remains at Rs 2,080 levels. CLICK HERE FOR THE CHART