NIFTY IT Index: As per the daily chart, NiftyIT index is showing consolidation in the range of 15,010 – 13,800 on a closing basis. The 100-days moving average (DMA) is currently placed at 14,884 lavels. The index has support at its 200-days moving average (DMA), currently located at 14,460 levels.
Though the index is currently trading above the trendline resistance of 15,010 and the 100-DMA of 14,884, only a strong close with subsequent follow-up buying can lead to a stronger breakout, which can see the index close in on the 15,700 and 15,900 levels, chart suggests. CLICK HERE TO VIEW CHART
Here are key levels of buzzing stocks in the index:
Wipro: The stock has crossed 52-week high of Rs 338 has been in an upward trend. At the current level of Rs 355, the stock looks attractively placed and one can expect more buying to come in. Any dip from the current levels would eventually see accumulation, as 50-DMA and 100-DMA hold a strong support for the stock in the range Rs 330 – Rs 325 levels.
HCL Tech: The stock is trading below 200-DMA placed at Rs 977 level. It has made three attempts to conquer the same average, but failed to achieve the milestone. It is re-attempting to cross the 200-DMA given the two percent jump from yesterday's close of Rs 946 levels. The move seems reliable, as technical indicators RSI (Relative Strength Index) and MACD (moving average convergence and divergence) indicate a strong possibility.
Tech Mahindra: The trendline resistance of Rs 725 has been crossed as per daily chart. The volumes have been subdued despite the rise in stock. The 200-DMA has acted as a strong buying level, currently situated at Rs 695. A bigger time frame (weekly chart) shows a formation that resembles “symmetrical triangle”. If the stock is able to stabilise above Rs 710 for another week, there are chances that it will trend higher thereafter, charts suggest.