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TCS, Infosys, Wipro: Here is how to trade IT stocks ahead of Q1FY20 results

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Nifty IT: The index has broken crucial trend-line support of 15,900 on closing basis with RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) suggesting a negative trend. The near-term support comes at 50-weekly moving average (WMA) placed at 15,320 and if breached, then we may see bearish trading signals. As of now, the market breath seems unfavourable. On the higher side, the index needs to conquer 16,200 levels to gain further ground. CLICK HERE FOR DETAILED CHART VIEW

 

Infosys Ltd (INFOSYS): The daily chart shows a the counter to be in a consolidation phase in the range of Rs 760 – Rs 690 from January 2019. This consolidation phase needs a breakout, which wouldd then define the next trend. The current scenario displays a gradual move towards Rs 700 – Rs 690 levels. The volumes have slipped and the stock is trading with below-average volumes with RSI and MACD also turning negative. This has impacted the momentum. However, the good news is the stock is trading above 200-day moving average (DMA), currently placed at Rs 697 levels.   CLICK HERE FOR DETAILED CHART VIEW

 

Tata Consultancy Services Ltd (TCS): Till last week, the stock was consistently rising upward with decent chart pattern and the supports were being held with buying strategies. There was investor participation at higher levels. That said, the current breach of Rs 2,200 has resulted in a weaker trend. From here on, the counter is showing its venerability towards a downside and may head towards the support levels of 100 DMA and 200 DMA at Rs 2,065 and Rs 1,980 respectively. The approach could be finding better opportunities around the support levels, or else find a breakout, which is obviously above 2,300 levels.  CLICK HERE FOR DETAILED CHART VIEW

 

Wipro Ltd (WIPRO): After a gap down below Rs 292 levels, the stock has entered in a bear phase. The stock can revive after taking the support of 200 DMA at Rs 265. However, the upside is capped at Rs 278 and Rs 285, which is it 100 DMA and 50 DMA. One can stay away from this counter till. The volumes have slipped below average, which is another sign of concern. CLICK HERE FOR DETAILED CHART VIEW

 

Tech Mahindra Ltd (TECHM): The weekly chart displays a clear breakdown of the 'double-top' arising at the top of the trend. Usually, such formations indicate a reversal in trend and if not supported with strong momentum, the stock may see lower levels soon. The near support comes in the range of Rs 650 – Rs 630 levels. One needs to be highly cautious as MACD has slipped zero-line with the RSI on the verge of entering the oversold region. The immediate hurdle comes at Rs 740, which is its 50-DMA. CLICK HERE FOR DETAILED CHART VIEW

 

HCL Technologies Ltd (HCLTECH): The overall trend suggests “Higher top, higher bottom” formation as per weekly chart. There is support at Rs 920, which is its recent low. Another support comes at 100 DMA around Rs 968. The resistance stays at Rs 1,120 and Rs 1,140 levels. CLICK HERE FOR DETAILED CHART VIEW