Infy, TCS, LTIM: Pivot levels to track on IT stocks as Fed readies rate cut: stocks to buy
Source: Business Standard
The NSE Nifty IT index has taken a sharp hit, and was down 3 per cent to 42,200 levels on profit-taking in intra-day deals on Wednesday just hours before the US Federal Reserve policy decision tonight. In comparison, the NSE Nifty 50 index was seen trading on a flat note at 25,400 levels.
ALSO READ: Can Nifty hit 26,000 post Fed rate cut? Check FIIs, retail bets here
Among individual stocks, Mphasis, Persistent Systems, Tech Mahindra, L&T Technology Services (LTTS) and others declined up to 6 per cent in the intraday trade. The selling at these counters was also attributed to That apart, the fall in IT stocks was also attributed to reports that Accenture plans to push back the bulk of its staff promotions by six months.
Against this backdrop here’s a technical update on top 5 IT stocks listed on the BSE and NSE.
Infosys
Current Price: Rs 1,900
Pivot Point: Rs 1,845
Upside Potential: 10%
Downside Risk: 12.1%
Break and sustained trade below Rs 1,845 can weaken the existing chart structure; post which the stock could potentially slide to Rs 1,720 – Rs 1,670 levels. On the positive front, as long as the stock manages to hold above Rs 1,900, it can attempt to scale new highs. The stock can potentially rally to Rs 2,090 levels; with interim resistance expected around Rs 1,945 and Rs 2,000-mark.
TCS
Current Price: Rs 4,387
Pivot Point: Rs 4,325
Upside Potential: 8.1%
Downside Risk: 10%
TCS stock has near support at Rs 4,355, and the pivot point for the stock will be Rs 4,325. Break and sustained trade below the same shall invite further trouble for the stock. On the downside, the stock could slide to Rs 4,130 with an outside chance of a dip all-the-way to Rs 3,950 levels.
For the stock to regain strength it will need to conquer its 20-DMA, and trade consistently above Rs 4,500. On the upside, the stock can potentially zoom to Rs 4,850 levels; with interim resistance seen at Rs 4,665 and Rs 4,740 levels.
HCL Technologies
Current Price: Rs 1,770
Pivot Point: Rs 1,665
Upside Potential: 7.3%
Downside Risk: 16.4%
For bullish bias, the stock needs to break and trade above Rs 1,815. Post which, the stock can potentially surge to Rs 1,900 levels; with interim resistance likely around Rs 1,810 and Rs 1,845 levels.
Tech Mahindra
Current Price: Rs 1,596
Pivot Point: Rs 1,555
Upside Potential: 11.8%
Downside Risk: 12.3%
Tech Mahindra is also trading below its 20-DMA and the stock now seems headed to test the all-important support at Rs 1,555 levels. As long as the support holds, the stock may look to bounce back above Rs 1,600 and revive the sentiment. On the upside, the stock can potentially rally to Rs 1,784; with interim resistance likely around Rs 1,637 and Rs 1,700.
LTIMindtree
Current Price: Rs 6,293
Pivot Point: Rs 6,060
Upside Potential: 7.1%
Downside Risk: 10.3%
On the positive front, the stock needs to sustain above Rs 6,265 for the positive momentum to prevail. On the upside, the stock can soar to Rs 6,740; with interim resistance seen at Rs 6,380 and Rs 6,515 levels.
First Published: Sep 18 2024 | 11:52 AM IST
