After rallying nearly 5 per cent in the last two sessions to a record high of 29,835.90, amid expectations of a strong Q1 earnings show, the Nifty IT index faced selling pressure on Friday. It slipped 1.25 per cent in intra-day session, with seven of 10 constituents in the red.
For the year, Nifty IT Index has notched a gain of 23 per cent, shows ACE Equity data. The large-cap names from the space, namely TCS (up 36 per cent), Infosys (up 50 per cent) and Wipro (up 50 per cent) too have clocked handsome returns during this period.
Following their Q1 results, most analysts remain bullish on these three names. Although, the current price action of these stocks needs breakout to gain further traction, suggest charts.
NIFTY IT INDEX
Likely target: 32,000 to 33,200 (after crossing 30,000 mark)
Upside potential: 6% to 10%
The index is entering uncharted territory with a firm bullish sentiment. Conquering the resistance at 30,000, its sentimental mark, may result in a rally towards 32,000 and 33,200 levels. The medium-term support stays at 28,000 as the momentum and price action are not showing any major downside. The immediate support comes at 29,200 levels, which needs to be considered on a closing basis. CLICK HERE FOR THE CHART
Infosys Ltd (INFY)
Likely target: Rs 1,730 to Rs 1,800 (after crossing 1,600)
Upside potential: 8% to 12.50%
The stock is struggling to conquer the immediate resistance of Rs 1,600 levels, as per the daily chart. However, following a decisive break above this mark, a rally towards Rs 1,730 and Rs 1,800 cannot be ruled out. On the downside, the closing basis support stays at Rs 1,520 levels. As long as the stock upholds the support, the positive bias is expected to remain intact. CLICK HERE FOR THE CHART
Tata Consultancy Services (TCS)
Likely target: Rs 3600 to Rs 3,750
Upside potential: 5.50% to 10%
The formation of the “Ascending Triangle” pattern indicates a positive upside on the breakout. While the stock did manage to cross Rs 3,370 levels, it failed to gain amid a lack of follow-up buying. Now, the stock needs to scale Rs 3,400 with strong volumes to rally towards the next levels of Rs 3,600 and Rs 3,750. The support stays at the downward rising trendline, placed at Rs 3,100 levels, as per the weekly chart. CLICK HERE FOR THE CHART
Wipro Ltd (WIPRO)
Likely target: Rs 660 and Rs 700
Upside potential: 12% and 20%
While the “Higher High, Higher Low” formation reflects a positive bias over the coming sessions, the stock is in the overbought category of the Relative Strength Index (RSI), which seems uneasy. That said, the trend is firm on the upward bias towards Rs 660 and Rs 700 marks with underlying strength holding ground. The immediate support comes at Rs 560 while medium-term support stays at Rs 520 levels. CLICK HERE FOR THE CHART