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Larsen & Toubro Infotech, Persistent: Mid-cap IT stocks that can rise 7-15%

The Nifty IT index has scaled a new record high of 30,818 levels and has surged over 25 per cent this calendar year (CY21), as compared to the S&P BSE Sensex and Nifty 50, which have gained 11.5 per cent and 14 per cent each during this period. A large chunk of this upside is attributed to the gains in the frontline stocks - Infosys, Tata Consultancy Services (TCS), and Wipro - that saw an increased investor participation post their June 2021 quarter numbers. Nasdaq-listed Cognizant made news for its record attrition rate and extraordinary hiring goals even as the company revised its fin.....
The Nifty IT index has scaled a new record high of 30,818 levels and has surged over 25 per cent this calendar year (CY21), as compared to the S&P BSE Sensex and Nifty 50, which have gained 11.5 per cent and 14 per cent each during this period.

A large chunk of this upside is attributed to the gains in the frontline stocks - Infosys, Tata Consultancy Services (TCS), and Wipro - that saw an increased investor participation post their June 2021 quarter numbers.

Nasdaq-listed Cognizant made news for its record attrition rate and extraordinary hiring goals even as the company revised its financial year revenue guidance upwards to 9-10 per cent in constant currency basis on Thursday. READ ABOUT IT HERE

Similarly, stocks in the mid-tier IT segment have been buzzing and continue to see a good investor interest. Here is the list of mid-cap IT stocks that look good on the charts.

Larsen & Toubro Infotech Limited (LTI)

Likely target: Rs 5,100 and Rs 5,300 levels

Upside potential:   7% and 11%

This counter has crossed its resistance of Rs 4,500 levels decisively and charts indicate a further upside towards Rs 5,100 and then Rs 5,300 levels. The medium-term outlook is bullish until Larsen & Toubro Infotech trades above Rs 4,250. The immediate closing basis support comes in at Rs 4,400 levels, as per the daily chart. Although, the Relative Strength Index (RSI) has entered the overbought condition, the price action is not highlighting any major weakness in the sessions ahead. CLICK HERE FOR THE CHART

 

Persistent Systems Limited (PERSISTENT)

Likely target: Rs 3,350 and Rs 3,550 

Upside potential:  7% and 12% 

Persistent Systems has seen over 50 per cent surge in calendar year 2021 (CY21) with charts indicating more headroom in the days ahead. The stock has seen bullish momentum in the overbought category of various technical indicators, signifying the strong underlying strength. The charts reflects “Higher high, Higher low” formation, which means that Persistent Systems would continue to move up and venture into uncharted territory until the support of Rs 3,000 and Rs 2,700 is held on a closing basis. The overall trend suggests that the stock is moving in the direction of Rs 3,350 and Rs 3,550 levels, as per the daily and weekly chart.  CLICK HERE FOR THE CHART

 

Oracle Financial Services Software Limited (OFSS)

Likely target: Rs 5,000 (after recording a new all-time high)

Upside potential:   7

The counter fell short by Rs 9 to record a new all-time high at Rs 4,658.40 levels, which was recorded in 2018. The current momentum suggests that OFSS has a strong support at Rs 4000 levels, which if held on the closing basis, could see the stock regaining of strength and a move towards a new record high. The breakout rally may take it towards Rs 5,000 levels, as per the daily chart. The immediate support comes at Rs 4,200 levels. The Moving Average Convergence Divergence (MACD) has crossed the zero line, indicating a positive sentiment with price action hinting an upward direction.   CLICK HERE FOR THE CHART

 

Cyient Limited (CYIENT)

Likely target: Rs 1,200 and Rs 1,250

Upside potential:   10% and 15%

After scaling a new-all time high of Rs 920 in June 2021, the stock has entered into a new bullish breakout zone. Now with a new high of Rs 1,092 levels, the counter is indicating an upside towards Rs 1,200 and then Rs 1,250 levels. There is support at Rs 950 on the closing basis.  CLICK HERE FOR THE CHART

 

Zensar Technologies Limited (ZENSARTECH)

Likely target: Rs 440 and Rs 455

Upside potential:   6% and 10%

With the “Higher High, Higher Low” formation on the techncial charts, the stock is well placed above the support of Rs 375 levels. The strength is not letting overbought condition to dominate the bears. The upside bias is likely to see Rs 440 and Rs 455 levels in this scrip gooing ahead, provided the overall market momentum stays strong.   CLICK HERE FOR THE CHART

 



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