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Infosys, Wipro, Mindtree: How to trade IT stocks around Q3 results

Infosys kick-started the earnings season for information technology (IT) services firms on Friday. The company's numbers for the December quarter were broadly in line with analysts' expectations with reported revenue and net profit growth higher by two per cent and 10.6 per cent, sequentially. Consequently, the stock surged over 4 per cent to Rs 777.55 on the BSE on Monday. With other tech companies like Tata Consultancy Services (TCS), Wipro, and HCL Tech in line to declare their December quarter results this week, here's a brief look at the charts of the respective companies and what they mean going forward.

Infosys Ltd (INFY): The counter is trading within the major moving averages of 50-day moving average (DMA), 100-DMA, and 200-DMA. A consecutive close above 100-DMA, placed at Rs 742.30 should result in an upward breakout for the stock. If that happens, a rally towards Rs 800 cannot be ruled out. Likewise, if Infosys fails to rise and gives consecutive close below Rs 715, which is its 50-DMA, then it may result in a breakdown. Earlier, a consolidation in the range of Rs 685 to Rs 785 had given a breakout on the upside, due to which, the overall trend looks positive.  CLICK HERE FOR THE CHART

 

Wipro Ltd (WIPRO): This counter is trading below 200-DMA since August 2019. After a decent correction towards Rs 232 levels, Wipro has managed to recover. During this phase, the stock has formed a “Double Bottom” pattern and has been trading higher after the breakout at Rs 243. Till the breakout level is held, the rally should move towards Rs 262, which is its 200-DMA. The Moving Average Convergence Divergence (MACD) is trading above the zero line with a positive crossover, a sign of an upward trend. CLICK HERE FOR THE CHART

 

Tata Consultancy Services Ltd (TCS): In the larger context, the counter is in a consolidation phase. On the downside, Rs 1,900 remains a key support level for TCS, and on the higher side Rs 2,300 remains an important resistance level. The stock has taken buying support whenever it fell near the 50-weekly moving average(WMA), which is currently located at Rs 2,080 levels.  A major upside is expected towards Rs 2,600 once the counter manages to absorb selling pressure at Rs 2,300 level. CLICK HERE FOR THE CHART

Mindtree Ltd (MINDTREE): This counter has crossed 200-DMA after five months. This optimism should prevail for some more time. To move forward, Mindtree needs to fill the gap-down it witnessed in July 2019 in the range of Rs 874 to Rs 852. Overall, the trend looks positive as 50 DMA and 100 DMA are rising upwards and looking to cross 200 DMA. The immediate support comes at Rs 800 level. CLICK HERE FOR THE CHART

 

Tata Elxsi Ltd (TATAELXSI): A trend line breakout on the weekly scale has boosted the upside potential. However, 200-WMA still remains the immediate resistance at Rs 880. A successive weekly close above the same may trigger a rally towards Rs 967, which is its 100 WMA. The support remains at 50-WMA placed at Rs 807 levels. The MACD has crossed the zero line upward, a sign of bullishness, as per the weekly chart. CLICK HERE FOR THE CHART



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