 "How to trade TCS post Q1 results? Key levels to track on Infy, HCLT, Wipro")
Shares of IT companies led the rally on Dalal Street this Friday morning after IT major - TCS beat Bloomberg estimates on the earnings front. The S&P BSE Sensex gained 100 points or 0.2 per cent at 80,040 levels, while the NSE Nifty 50 index advanced 0.2 per cent to 24,370 levels.
On Thursday post market hours, TCS reported its Q1FY25 results. The company's net profit grew 8.7 per cent year-on-year (Y-o-Y) to Rs 12,040 crore, revenue increased 5.4 per cent Y-o-Y to Rs 62,613 crore, and margins expanded 1.5 per cent Y-o-Y to 24.7 per cent.
Bloomberg had estimated TCS revenue to be at Rs 62,128 crore and profit at Rs 11,959 crore.
TCS stock soared nearly 3 per cent to Rs 4,033 and was the top gainer among the Sensex 30 stocks. Infosys rallied 1.5 per cent to Rs 1,680. The Infy ADR had surged 2.7 per cent in overnight trades on the New York Stock Exchange.
HCL Technologies, which is scheduled to announce its Q1 results today, was up 1 per cent at Rs 1,525. Among others, Wipro, LTIMindtree jumped up to 2 per cent each.
Against this background, here's how IT stocks are placed on the charts; here the key levels to watch out on TCS, Infosys, HCL Technologies, Wipro and LTIMindtree charts.
TCS
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Current Price: Rs 4,022
Upside Potential: 5.8%
Support: Rs 3,980
Resistance: Rs 4,060; Rs 4,160
Following the 2 per cent gap-up trade on Friday, TCS stock is now seen trading close to its higher-end of the Bollinger Bands on the daily scale, which stands at Rs 4,060. Above, which charts suggest likely resistance for the stock at Rs 4,160 levels.
On the downside, the stock is likely to find support around Rs 3,980 levels. The near-term bias is likely to remain favourable as long as TCS stock holds above Rs 3,935 - its 100-DMA (Daily Moving Average). CLICK HERE FOR THE CHART
On the upside, the stock can attempt to test its highs around Rs 4,255; with interim resistance seen around Rs 4,140 and Rs 4,195 levels.
Earlier on Thursday, TCS had seen a long build in the July F&O series, with the stock rising 0.5 per cent, and open interest increasing by 10.5 per cent on Thursday.
Infosys
Current Price: Rs 1,673
Upside Potential: 11.8%
Support: Rs 1,660; Rs 1,630
Resistance: Rs 1,680; Rs 1,755
Infosys stock has been trading with a positive bias post the breakout above its super trend line resistance 3 days back. The stock at present is seen testing resistance around the higher-end of the Bollinger Bands on the weekly charts.
Breakout and sustained trade above Rs 1,680 can trigger a fresh round of buying for the stock. On the upside, the stock can potentially rally to Rs 1,870; with interim resistance likely around Rs 1,755 and Rs 1,800.
On the downside, support at Rs 1,660 and Rs 1,630 holds the key; failure to hold above these levels can negate the positive bias. CLICK HERE FOR THE CHART
HCL Technologies
Current Price: Rs 1,518
Upside Potential: 9%
Support: Rs 1,472
Resistance: Rs 1,550
HCL Technologies has been trading above its 100-DMA for the last six trading sessions. However, the key momentum oscillators are showing some signs of tiredness on the daily scale. The stock faces near resistance at Rs 1,550. Breakout and sustained trade above the same holds the key for further gains at the counter. CLICK HERE FOR THE CHART
On the upside, the stock can rally to Rs 1,650 levels. The 100-DMA support stands at Rs 1,472. A dip below the same can weaken the chart pattern.
Wipro
Current Price: Rs 548
Upside Potential: 12.2%
Support: Rs 535
Resistance: Rs 575
Wipro stock is seen trading in a rising channel on the daily scale. The near-term bias for the stock is likely to remain upbeat as long as it sustains above Rs 535. On the upside, the stock can rally to Rs 615; with interim resistance seen at Rs 575 levels. CLICK HERE FOR THE CHART
LTIMindtree
Current Price: Rs 5,503
Upside Potential: 15.4%
Support: Rs 5,380
Resistance: Rs 5,645; Rs 5,925
LTIMindtree stock is seeing a breakout from its recent consolidation phase. The stock seems on course to test the higher-end of the Bollinger Bands on the daily scale at Rs 5,645 levels. CLICK HERE FOR THE CHART
The weekly chart suggests that the bias for the stock is likely to strengthen on sustained trade above Rs 5,000-mark. As such, the stock can attempt to re-test its earlier highs around Rs 6,350 levels; interim resistance for the stock is seen at Rs 5,925.
Bias for the stock is likely to remain positive as long as it holds above Rs 5,380.