The Nifty IT index is witnessing consolidation in the range between 13,600 - 15,000 as per the daily chart. The index has been hovering around its 200-day moving average (DMA) and 100- DMA and has failed to break out of this range due to lack of follow-up buying. A breakout will lead to a bigger rally and the index can then hit the 16,400 mark. On the other hand, the index can hit 12,500 levels in case the trend weakens.CLICK HERE FOR THE CHART
The index has witnessed lower volumes around 15,000 levels, a rise in trades at crucial levels signify the strength of the index. A reversal sends a "weaker" message to the trading symphony. Similarly, on the downside, 13,600 levels has seen buying interest as negative trend lost higher trades, charts suggest.
Here's a look at how the four Nifty IT stocks look on the technical charts -
INFOSYS: The stock has support at the 50-week moving average (WMA) located around Rs 615, which was last seen during November. The counter has regained buying momentum post this. Currently, the average is placed at Rs 630, a level that indicates support area, as per the chart.
TCS : The stock is currently hovering around its 50 day moving average (DMA) located at Rs 1919, and has breached the 100 DMA in the daily chart. The stock failed to move above 100 DMA due to lower follow-up buying. The 200 DMA stays at Rs 1,800 with immediate resistance at around Rs 1955, its 100 DMA.
TECH MAHINDRA: The stock has never traded below 50-WMA since September 2017. Recently, it tested Rs 640 levels, reversing the said average support of Rs 638. Currently, the 50-WMA is placed around Rs 670 - Rs 675 levels, with RSI (Relative Strength Index) in the process of positive crossover. The daily chart suggests trendline resistance around Rs 730 - Rs 733 with downside support of 200-DMA, which is placed at Rs 685.
WIPRO: The stock is continuously witnessing pressure in the range between Rs 338 - 343 level. It has broken out on the upside, scaling Rs 340 levels on closing basis. The counter has a strong support at its 100-DMA of Rs 312 - 315 levels, chart suggests.
KPIT: The stock has seen consolidation in the range of Rs 200 - Rs 225. It broke out on upside by trading above Rs 230 levels recently. The current level of Rs 219 is closer to the 50-DMA, located at Rs 213.