The domestic equity market is riding high on the waves of optimism, with robust global cues and a dovish Fed commentary boosting investor sentiment. Amidst this positive atmosphere, IT stocks, including giants like Tata Consultancy Services (TCS), Infosys, and HCL Technologies, are in the spotlight as the earnings season kicks off. Pravesh Gour, Senior Technical Analyst at Swastika Investmart, shares insights on these tech giants, providing trading strategies that might pave the way for potential gains in the current market climate.
TCS: A Strong Contender
Buy | Target Price: Rs 3,800 | Stop Loss: Rs 3,470
TCS has recently broken free from a triangle formation on the weekly chart, marking a promising uptrend with a higher high-higher low pattern. This pattern suggests a bullish outlook, making it a favorable candidate for short-term investment. The stock is trading above its crucial moving averages, showcasing its robust technical stance. While the immediate resistance is at Rs 3,700, a breakthrough could propel the stock towards the Rs 3,800 mark. To mitigate risk, traders should be vigilant about the demand zone at Rs 3,470. Moreover, the momentum indicators RSI and MACD align with the current positive momentum.
HCL Technologies: A Rally in Progress
Buy | Target Price: Rs 1,320 | Stop Loss: Rs 1,220
HCL Tech exhibits signs of a substantial rally as it escapes from a triangle formation on the daily chart. Additionally, it has witnessed a breakout of an inverse Head and Shoulders pattern on the weekly chart. The stock has retraced to the previous breakout level around Rs 1,220 and is set to embark on a fresh uptrend towards Rs 1,320. Trading above essential moving averages further solidifies its position. The immediate resistance at the 20-DMA, around Rs 1,270, might provide a temporary hurdle before the stock surges towards Rs 1,320. A downside demand zone at Rs 1,220 serves as a crucial level for corrections.
Infosys: A Stronghold in IT
Buy | Target Price: Rs 1,550 | Stop Loss: Rs 1,400
Infosys stands as one of the stalwarts in the IT sector, consistently forming higher high-low patterns. Its chart reflects a promising structure, with the stock trading comfortably above key moving averages. Positive momentum indicators in RSI and MACD reinforce the stock’s strength. Moving forward, the Rs 1,520 resistance level is a key pivot point to monitor. A breakthrough here could set the stage for a short-term target of Rs 1,550 or even higher. To manage risk effectively, a stop-loss strategy at Rs 1,400 is recommended to safeguard investments.
Disclaimer: The provided stock market insights are for informational purposes and should not be considered as investment advice. It is advisable to seek guidance from a qualified financial advisor before making investment decisions.
