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

Domestic stock indices made fresh highs no Tuesday, thanks to buying in banking & financials and metal stocks, The Adani Group stocks continued to hog limelight. The BSE Sensex advanced 431.02 points, or 0.63 per cent, to end at 69,296.14. The NSE Nifty added 168.30 points, or 0.81 per cent, to end the day at 20,855.10.

A few stocks namely Tata Consultancy Services Ltd, HCL Technologies Ltd and Infosys Ltd are likely to remain under the spotlight of traders for the session today. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:

Tata Consultancy Services| Hold | Target Price: Rs 3,650 | Stop Loss: Rs 3,430
TCS is consolidating sideways on the hourly time frame and is forming a potential Cup and Handle formation on the daily chart. A recent rebound from the 100 SMA level suggests bullish momentum. On the upper side, the Rs 3,550 level is an immediate resistance and, above this, one can expect a big move till Rs 3,650 on the shorter time frame. On the downside, the Rs 3,430 level is the demand zone for any correction. The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.

HCL Technologies | Buy | Target Price: Rs 1,360-1,420 | Stop Loss: Rs 1,280
HCL Tech has witnessed a breakout of an Inverse Head and Shoulder formation on the daily chart, with strong volume. It retested its last breakout levels and also took support at around 20-DMA. The structure of the counter is health, as it is trading above all its important moving averages (50-, 100- and 200-DMAs). The pattern suggests an immediate target of Rs 1,360. The stock has the potential to move further upside to Rs 1,420 level. On the downside, the Rs 1,280 level will act as an immediate support level.

Infosys | Hold | Target Price: Rs 1,540 | Stop Loss: Rs 1,420
Infosys has witnessed a breakout of double bottom formation on the daily chart. It is now consolidating in the Rs 1,440–1,480 zone. It also looks lucrative from  a short-term basis. The pattern suggests an immediate target of Rs 1,500 and, above that, one can expect a big move till Rs 1,540 on the shorter time frame. On the downside, the Rs 1,420 level is the demand zone for any correction.
 

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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