Is Nifty IT index the best bet when frontline indices correct?

Wipro's technical chart indicates pressure between Rs 343-Rs 334 levels. The stock in recent past has retraced from the support of 200-day EMA located around Rs 290- Rs 300 levels.

NIFTY IT INDEX: The index has rebounded sharply from 200-day Exponential Moving Average (EMA) and is currently halted at 50-day EMA and 100-day EMA located at 14,690 and 14,630, respectively. The technical indicator Relative Strength Index (RSI) is hovering around 60-odd levels while Moving Average Convergence Divergence (MACD) is trending above zero line.

As per the pattern analysis, the weekly frame suggests formation of double bottom. A strong close above 50-day EMA on weekly chart suggests interest in fresh buying.

WIPRO: The stock scaled 52-week high on Tuesday crossing Rs 338 level. The technical chart indicates pressure between Rs 343-Rs 334 levels. The stock in recent past has retraced from the support of 200-day EMA located around Rs 290- Rs 300 levels. The stock has a co-relation with MACD, which has made positive crossover at current levels.

HCL TECH: The stock is in consolidation phase on daily chart,oscillating between the low of Rs 950 and high of Rs 1,070. The formation suggests a decisive close above Rs 1,070 would attract buying interest. The volumes scenario indicates stagnation.

TCS: The stock shows a similar pattern like Wipro. All the major formations and pattern coincides with the stock. The MACD indicator is making positive crossover rising above the zero line. The stock has covered up the gap down range of Rs 1,965- Rs 1,950 and is currently trading above it. The weekly formation suggests buying interest.