Domestic equity indices posted big gains on Tuesday, tracking firm global cues. Stocks gained as crude oil prices eased and investors cheered a dovish Fed commentary. The BSE Sensex jumped 566.97 points, or 0.87 per cent, to settle the day at 66,079.36. The NSE Nifty advanced 177.50 points, or 0.91 per cent, to close at 19,689.85.

IT stocks such as Tata Consultancy Services, Infosys and HCL Technologies are likely to be in focus ahead of the kick start of the earnings season. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart to say on these stocks ahead of Wednesday’s trading session:

Tata Consultancy Services | Buy | Target Price: Rs 3,800 | Stop Loss: Rs 3,470

TCS has broken a triangle formation on the weekly chart. It formed higher high-low pattern. The overall structure looks good for short-term investment, as the scrip is trading above its key moving averages. On the upper side, the Rs 3,700 level offers an immediate resistance; above this, one can expect a big move till Rs 3,800 in the short time frame. On the downside, the Rs 3,470 level is the demand zone for any correction. The momentum indicator RSI is also positively poised while MACD is supporting the current strength.

HCL Technologies | Buy | Target Price: Rs 1,320 | Stop Loss: Rs 1,220

HCL Tech has witnessed a breakout of a triangle formation on the daily chart. On the weekly chart, it has given a breakout of an inverse Head and Shoulders formation. The stock has retested its previous breakout level at around Rs 1,220 and started its new leg of rally towards Rs 1,320 level. The counter is trading above all its key moving averages. The momentum indicator RSI is also positively poised. On the upside, the 20-DMA will act as an immediate resistance at around Rs 1,270 level; above this, one can expect a big move till Rs 1,320 in the shorter time frame. On the downside, the Rs 1,220 level is the demand zone for any correction.

Infosys | Buy | Target Price: Rs 1,550 | Stop Loss: Rs 1,400

The Infosys chart is one of the strongest among IT names. It is continuously forming higher high-low. The structure is lucrative, as the stock is trading above its key moving averages. The momentum indicator RSI is also positively poised whereas the MACD is supporting the current strength. Looking ahead, the resistance level at Rs 1,520 appears to be a pivotal point to monitor. A breach above this level could set the stage for a near-term target of Rs 1,550 or even higher. To manage risk effectively, consider implementing a stop-loss strategy at Rs 1,400 to safeguard investment.

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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