Tata Motors, Infosys: How to trade UK-linked Indian stocks post Brexit deal

The European Union (EU) and the United Kingdom (UK), on Saturday, agreed to a Brexit agreement that comes into force on January 1, settling a bitter divorce that stretched for over four years. EU ambassadors and lawmakers will now pore over the EU-UK Trade and Cooperation Agreement and Britain’s parliament will vote to approve a trade deal with the EU on December 30. 

The deal as it stands ensures that Britain can continue to trade in goods with the world's biggest trading bloc without tariffs or quotas after the UK breaks fully free of the EU. READ MORE

The Brexit deal removes a major overhang on equity markets worldwide, including in India, where the benchmark indices were trading over half a per cent higher in Monday's noon deals. The stocks directly linked to Britain or the Brexit were trading higher.

Among individual stocks, Tata Motors and Motherson Sumi surged 4 per cent each while TCS, Infosys, Tech Mahindra, and Wipro were all trading over 1 per cent higher.

Here's how the Brexit-linked stocks look on the charts.

Tata Consultancy Services Limited (TCS): After hitting a new all-time high above Rs 2,873 recently, the stock is able to generate buying momentum at higher levels. The gradual upside toward this new high is witnessing a steady rise in the Relative Strength Index (RSI), which has successfully crossed the 55 value. Going forward, till the counter trades above Rs 2,800 levels on the closing basis, the upside move may see a rally in the direction of Rs 3,200 levels, as per the daily chart. CLICK HERE FOR THE CHART
 
Infosys Ltd (INFY):  The counter has managed to conquer the resistance range of Rs 1,150 to Rs 1,200 levels. This breakout is heading towards Rs 1,500 from a short-term perspective. The support comes at Rs 1,150 levels. The weekly chart suggests a strong buying momentum may emerge around Rs 1,175 levels, if the counter witnesses any sudden downside. A consolidation breakout can be seen on the Moving Average Convergence Divergence (MACD). CLICK HERE FOR THE CHART
 
Motherson Sumi Systems Limited (MOTHERSUMI): The counter is attempting to regain the losing momentum above the 200-weekly moving average (WMA). Going forward, a move above Rs 165 levels may trigger a rally towards Rs 180 levels. On the downside, a closing basis support stays at Rs 150 levels. The trend is looking optimistic as the counter witnessed sharp recovery and buying interest in the recent weakness towards Rs 145 levels. CLICK HERE FOR THE CHART
 
Tata Motors Ltd (TATAMOTORS):  The recent reversal around the 50-day moving average (DMA) placed around Rs 156 levels highly suggest a strong buying and that accumulation is underway in this counter. Besides, the recent breakout above Rs 150 clearly implicates the upside move. The overall trend is moving towards Rs 200 levels. The recent gap up sessions depicts the upward momentum with strong underneath strength. CLICK HERE FOR THE CHART
 
Tech Mahindra Ltd (TECHM): The monthly breakout above Rs 800 levels, the weekly breakout above Rs 880 levels and daily breakout above Rs 900 levels show a strong upward bias towards Rs 1,200 levels. The closing basis support comes at Rs 875. The overall trend is rising along the 50-DMA, currently placed at Rs 870 levels. CLICK HERE FOR THE CHART

Wipro Ltd (WIPRO):  A clear support of 50-DMA can be seen on the daily chart. The recent reversal indicates a move to sustain above Rs 380 levels. If that happens a breakout may see a rally in the direction of Rs 450 levels. The RSI has crossed the resistance of Rs 65 value, this exhibits the positive strength being gradually witnessing upward bias. CLICK HERE FOR THE CHART