Infosys, TCS: How to trade IT stocks after Trump's order on H-1B visa use

The overall trend on the Nifty IT index looks optimistic as the 50-day moving average (DMA) formed a positive crossover with 200-DMA, resulting in the Golden Cross.

IT stocks slipped on Tuesday after the US President Donald Trump signed an executive order restricting federal agencies from contracting or subcontracting foreign workers. The Nifty IT index declined nearly 1 per cent. Among individual stocks, Tech Mahindra traded over 2.5 per cent lower while HCL Tech and L&T Infotech were down over 1.5 per cent. 

So, how should you trade IT stocks in the current market environment? Here's a look at what technical indicators suggest for them. 

NIFTY IT: Since the Relative Strength Index (RSI) has entered an overbought condition, the upside moves have slowed down. Nonetheless,