Infosys, Tech M: Tech charts suggest its time to bottom fish IT stocks

The NSE IT index has been moving in a tight range, a breakout in either direcion can trigger a 2,000 points movement.

NIFTY IT INDEX
Outlook: Trading tightly between key moving averages

The Nifty IT index trades in a tight band of 100-day moving average (DMA) and 200-DMA, placed at 34,496 and 33,048 respectively. Likewise, the Relative Strength Index (RSI) trades sideways in the value of 45 to 39.  Either side breakout in Nifty IT could see an absolute rally of over 2,000 points. CLICK HERE FOR THE CHART

Infosys Ltd (INFY)

Likely target: Rs 1,800
Upside potential: 5%

Although, Infosys failed to overcome the obstacle of the Rs 1,800 level, its 50-DMA, the downside bias could not dismantle the 200-DMA support. The 200-DMA is currently placed at Rs 1,646 level. In addition, the stock continues to witness a bullish accumulation near Rs 1,680 – Rs 1,660 levels, according to the daily chart. The build-up of strength could again see revival towards 50-DMA. CLICK HERE FOR THE CHART

 
Tata Consultancy Services (TCS)
Likely target: Rs 4,000
Upside potential: 5%

Among the IT stocks, Tata Consultancy Services managed to remain above the 50-DMA in the recent overall weakness in the market. This exhibits a firm underlying strength, which appears to favour the bulls. The support for the stock comes at Rs 3,600 with the trend aiming for the Rs 4,000 level, its latest hurdle, according to the daily chart. CLICK HERE FOR THE CHART
 
Tech Mahindra Ltd (TECHM)
Likely target: Rs 1,553
Upside potential:  8%

The shares of Tech Mahindra have support at the 200-DMA, set at Rs 1,346. A robust close above Rs 1,425 could signal a rally towards Rs 1,553 level, which is the 100-DMA, according to the daily chart. The RSI is holding the weakness above the oversold territory, indicating a positive momentum. CLICK HERE FOR THE CHART

 
Mphasis Ltd (MPHASIS)
Likely target: Rs 3,200
Upside potential: 8%

The recent weakness has seen the stock honouring the last reversal mark of Rs 2,825 level. The 200-DMA comes at Rs 2,800 level. Thus, these two supports hold the bullish bias and the rally could jump towards Rs 3,200 level, which is its 100-DMA. CLICK HERE FOR THE CHART