Trading

TCS, Infosys, HCL Tech: Trading strategies for these buzzing blue-chip IT stocks

Indian benchmark indices saw a bout of profit booking during the trading session on Wednesday ahead of TCS‘ Q1 results later today, officially kicking off results season. BSE Sensex tumbled 426.87 points, or 0.53 per cent to end at 79,924.7780. The Nifty50 index cracked 108.75 points, or 0.45 per cent, to settle at 24,324.45 for the day.

Some buzzing blue-chip IT stocks namely Tata Consultancy Services Ltd (TCS), Infosys Ltd and HCL Technologies Ltd are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday’s trading session:

Infosys | Buy | Target Price: Rs 1,780 | Stop Loss: Rs 1,570

Infosys has been hovering in the cycle of higher highs and higher lows above all its key moving averages on the weekly chart. The counter has seen decent traction in the past three weeks, from its 50-week SMA which historically has provided strong support to the counter. Meanwhile, on the oscillator front, weekly RSI has witnessed a positive crossover portraying a bullish quotient. Hence, we recommend buying Infosys around Rs 1,635-1,645, keeping a stop loss of Rs 1,570 on a closing basis for a target of Rs 1,780.

Tata Consultancy Services | Caution | Resistance: Rs 4,100 | Support: Rs 3,790

In the past three days, TCS has faced downward pressure, leading to a gradual decline in its stock price towards the key support zone around Rs 3,870, near its 50-day SMA. This level is also significant due to the presence of a line of parity which may provide additional support. If these support levels hold, we could see a rebound towards the Rs 4,100-4,150 range. Conversely, if the support fails, the selling pressure is likely to continue, potentially driving the stock down to Rs 3,790 close to its 200-day SMA.

HCL Technologies | Buy | Target Price: Rs 1,620 | Stop Loss: Rs 1,435

HCL Technologies has confirmed a breakout above the multiple resistance zone near Rs 1,490-1,500 levels near its 100 SMA on the daily charts, indicating a potential continuation of its uptrend. The stock displays a bullish trend on the weekly chart, characterized by higher tops and higher bottoms, supported by an upward-sloping channel that suggests a prevailing upward bias. Additionally, the weekly RSI has given a crossover above its reference line, generating a buy signal. The daily RSI breaking above horizontal resistance further confirms the price breakout. Thus, we advise traders to go long in the stock around Rs 1,490-1,500 with stop loss of Rs 1,435 for the upside target of Rs 1,620.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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