TCS, Infy, HCL Tech: Should you buy or sell IT stocks ahead of Q2 results?

Technical charts suggest that heavyweights TCS and Infosys seem to be favourably placed, while Wipro could face some downward pressure. Check key levels here.

Tata Consultancy Services (TCS), India's largest IT software company, will kick-start the Q2 (September quarter) earnings season on October 10, Thursday. On the same day, another Tata Group IT firm - Tata Elxsi will also announce its July - September quarter earnings.

In the following days, HCL Technologies is scheduled to report Q2FY25 earnings on October 14 followed by MphasiS and LTTS (L&T Technology Services) on October 16; Infosys and Wipro on October 17 and Tech Mahindra on October 19.

Analysts expect the IT industry to have continued on the path of recovery in Q2, similar to the preceding quarter, rather than sprint towards growth. According to consensus estimates, the top four IT firms are likely to report up to 4 per cent year-on-year (Y-o-Y) growth. 

Against this background and the prevailing chart patterns here's what to expect from key IT stocks going ahead.

TCS

Current Price: Rs 4,229

Upside Potential: 8.8%

Support: Rs 4,195

Resistance: Rs 4,345; Rs 4,375

TCS stock is trading below its short-term moving averages, thus indicating a slightly tepid bias. The stock, however, is trading in an oversold zone on the daily scale; hence some pullback from present levels cannot be ruled out.

On the medium-term scale, TCS is seen testing support around its 20-WMA (Weekly Moving Average) at Rs 4,195. As long as this support is held, the stock can bounce back to Rs 4,600 levels; with interim resistance likely around Rs 4,345 (20-DMA - Daily Moving Average) and the 50-DMA at Rs 4,375.

On the flip side, break and sustained trade below Rs 4,195 can trigger a slide towards Rs 3,955 levels. CLICK HERE FOR THE CHART

Infosys  

Current Price: Rs 1,935

Upside Potential: 8.5%

Support: Rs 1,913; Rs 1,870

Resistance: Rs 1,960; Rs 2,012

Despite the recent market fall, Infosys managed to stand its ground and is seen trading above its key moving averages. The price-to-moving averages action remains favourable across time-frames. Further, key momentum oscillators on the daily scale are also favourably placed.

Infosys stock is likely to test Rs 2,012 on its way up, with some resistance at Rs 1,960. Break and sustained trade above the same can unfold fresh upside momentum towards Rs 2,100-odd levels. In case of a dip, support for the stock is seen at Rs 1,913 and Rs 1,870 levels. CLICK HERE FOR THE CHART

HCL Technologies

Current Price: Rs 1,771

Bias: Range-bound

Support: Rs 1,740; Rs 1,725

Resistance: Rs 1,820; Rs 1,840

HCL Technologies is seen trading in a tight range between Rs 1,720 - Rs 1,820 for more than a month now. The Bollinger Bands on the daily scale suggest a likely range of Rs 1,740 - Rs 1,840.

Key support for the stock stands at Rs 1,725; below which a fall to Rs 1,620 seems likely. On the upside, above Rs 1,840 the stock can spurt to Rs 1,900 levels. CLICK HERE FOR THE CHART

Tech Mahindra

Current Price: Rs 1,619

Bias: Range-bound

Support: Rs 1,570

Resistance: Rs 1,670

Tech Mahindra too is moving in a tight range for more than a month. The stock needs to break from the Rs 1,570 - Rs 1,670 range for a fresh trend to emerge. On the downside, near support for the stock is seen at Rs 1,555; below which the stock can dip to Rs 1,505 and Rs 1,405 levels. 

On the upside, above Rs 1,670 the stock can jump to Rs 1,760 levels. CLICK HERE FOR THE CHART

Wipro

Current Price: Rs 523

Downside Risk: 5.2%

Support: Rs 513; Rs 510

Resistance: Rs 537; Rs 555

Wipro is seen testing support around its 50-DMA in trades today at Rs 523. For the last four trading sessions the stock has closed consistently below the 20-DMA, suggesting presence of selling pressure at higher levels. 

The stock has near support at Rs 513 and Rs 510; below which stands the all-important 200-DMA at Rs 496. Key momentum oscillators on the daily and weekly scale are slightly in favour of the bears. Hence, the stock may see some downward pressure in the near-term.

In case of a pullback, the 20-DMA at Rs 537 and the higher-end of the Bollinger Bands at Rs 555 could act as resistance levels, suggests the daily chart. CLICK HERE FOR THE CHART