The Nifty IT index appears strong as it has managed to hold 200-day moving average (DMA) on the daily chart. The said moving average is rising continuously taking the prices higher with every new trading session. Every dip below 200-DMA has witnessed buying for short-term trading, the chart suggests.
Currently, the 100-DMA is witnessing resistance as the price could not procure follow-up buying. On October 30, 2018, the index climbed above 14,821 after breaking 13,870, its 200-DMA; however, it failed to move higher as the immediate session closed in the negative zone. Thereon, the stock has recovered, hitting 15,062 - above its 100-DMA of 14,940. The index, however, has failed again as follow-up buying has not emerged, the chart suggests.
CLICK TO VIEW CHART
At the current level of 14,325, the index is witnessing immediate resistance of 50-DMA located at 14,887. The overall trend remains stable till index is honouring the 200-DMA, indicated by the daily chart.
TCS: The stock has been continuously trading above 200-DMA on the daily chart, even when benchmark indices witnessed correction recently. The negative crossover of 100-DMA over 50-DMA has impacted the trend as per chart. The current level of 100-DMA is Rs 1,953 and 50-DMA is Rs 1,926 - its immediate resistance range. The level of Rs 1,872 stays as the support of 200-DMA as per chart. A strong decisive breakout above Rs 1,953 will lead to Rs 2,030 and further to Rs 2,070, chart suggests.
The weekly chart shows strong support in the range between Rs 1,750 - Rs 1,800 for the medium term, the level witnessed buying during October and November last year.
Infosys: The overall trend for Infosys indicates a bullish view as per the daily chart. A close above Rs 685 may see a rally towards Rs 714 which will fuel more buying leading towards Rs 740 level, chart suggests. Currently, the stock is too resilient to trade below 200-DMA located at Rs 620 on the daily chart. The 50-DMA is located at Rs 663, its immediate support.
The weekly chart indicates minor resistance at Rs 700 level; however, the "doji" candle stick pattern indicates positive rally as stock trades above high of Rs 677 level.