Infy, Coforge: Breakout in IT index may assist stocks to soar up to 10%

While index requires to scale major hurdles, the aggressive rally towards those has triggered positive upside in IT stocks.

Nifty IT index surged over 2 per cent on Friday, right after demonstrating aggressive structure over the 200-day moving average (DMA). This move could garner fresh upside in IT stocks, especially those n the verge of delivering bullish breakouts. 

On Friday, Shares of Infosys, Tata Consultancy Services, Persistent Systems rose 2 per cent, while the rest of the IT pack gained over 1 per cent. 

Here’s the technical outlook for stocks gearing to deliver robust breakouts:-

NIFTY IT INDEX

Outlook: Index needs to scale significant barriers to remain bullish 

While the index has managed to scale over the 200-day moving average (DMA) set at 28,856, it needs to clear following hurdles of 29,600 and 30,400-level.

When that occurs, the underlying trend shall endure bullishness from a medium-term perspective. Support for the current trend stands at 28,415-mark, its 50-DMA.  CLICK HERE FOR THE CHART

LTIMindtree Ltd (LTIM)

Likely target: Rs 5,800

Upside potential: 10%

Shares of LTIMindtree are well placed on the charts. A move over Rs 5,300 could trigger a sharp upside in the direction of Rs 5,800, as per the daily chart. 

The recent rally in the stock displays supports at Rs 4,900 and Rs 4,700 level. Trend to attract bullishness until the 200-DMA is protected.  Weekly chart denotes optimism over its 100-weekly moving average (WMA) placed at Rs 5,079-mark. CLICK HERE FOR THE CHART

Coforge Ltd (COFORGE)

Likely target: Rs 5,200

Upside potential: 10%

Shares of Coforge have sustained post breaking out of Rs 4,400 hurdle, as per the daily chart. The upward rally is resilient and strives to achieve higher levels in the coming sessions. The trend suggests a move to Rs 5,200. 

Bollinger Band has begun to widen, suggesting momentum to support upward breakout, as per the daily chart. Since March of this year, the stock has been scaling “Higher Highs”, with every dip witnessing accumulation. The same prejudice may be expected in coming sessions. CLICK HERE FOR THE CHART

L&T Technology Services Limited (LTTS)

Likely target: Rs 4,400

Upside potential: 10%

The “Double Bottom” breakout has pushed this stock in the bullish territory, igniting upward bias from a medium-term perspective. While the stock has gone sideways since early May of this year, the sentiment towards the trend remains positive. 

The support for the stock stays at Rs 3,670-mark, its 200-DMA. Also, Rs 3,800 possesses strength to garner accumulative stance, as per the daily chart. Breakout over Rs 4,000 could see a rally to Rs 4,400-mark. CLICK HERE FOR THE CHART

Infosys Ltd (INFY)

Outlook: Trend remains fragile

Shares of Infosys are trading substantially beneath the 200-day moving average (DMA), currently placed at Rs 1,427-level. The support for the present reversal stays at Rs 1,267, its 50-DMA. 

The stock is heading towards 1,360, with the Relative Strength Index (RSI) breaking out over its 60 value. The overall trend still remains fragile until the stock surpasses the 200-DMA. CLICK HERE FOR THE CHART