Buy TCS, Infosys for near-term gains, charts show upside potential for these four IT stocks

Buy TCS, Infosys for near-term gains, charts show upside potential for these four IT stocks

By Manish Hathiramani

The Nifty has been moving from strength to greater strength and continues to project a strong momentum going forward. While short term corrections and profit booking phases cannot be ruled out, the overall trend remains bullish. We just witnessed a sharp correction a couple of days back where from a high of 13777 the Nifty made a low of 13131. This has not changed the macro trend and one can still find stocks worth investing in. I have shortlisted a few stocks within the IT pack which in my opinion still have steam left and can propel the index further.

TCS: It was imperative for this stock to get past 2450 on a closing basis for an investment buy which it did with complete ease. The stock continues to remain in the hands of the bulls and we should endeavor a short term target of 3000 with a stop loss of 2800. From an investment perspective, the target would be 3200 with a stop loss of 2600.

HCL TECH: The level of 800 was a good support point for this stock and we were able to bounce from there rather quickly and in a span of 4-5 weeks we are trading above 900. There is still a lot of steam left and we could project a target of 1070-1100 and place a stop loss at 795.

WIPRO: This stock has a similar chartical structure to HCL TECH. The resistance level was 290 which the stock flew out of and achieved 370-380 in just 3-4 weeks. We are headed higher and can trade for a target of 420 and a stop can be placed at 310.

(Manish Hathiramani is a proprietary index trader and technical analyst at Deen Dayal Investments. Views expressed are the author’s own. Please consult your financial advisor before investing.)