Infy, TCS, LTIM: Pivot levels to track on IT stocks as Fed readies rate cut

The Nifty IT index had shed 3% on Wednesday ahead of the US Fed policy decision. Here are the key pivot points to track on top IT stocks with potential upside and downside targets as per charts.

The NSE Nifty IT index has taken a sharp hit, and was down 3 per cent to 42,200 levels on profit-taking in intra-day deals on Wednesday just hours before the US Federal Reserve policy decision tonight. In comparison, the NSE Nifty 50 index was seen trading on a flat note at 25,400 levels.

In the process, the Nifty IT index had dipped below its 20-DMA (Daily Moving Average) for the first time since the breakout on August 18, 2024. Technically, the Nifty IT index has near support at 41,490 followed by 40,800 levels. However, the worrying factor seems a negative divergence on key momentum oscillators both on the daily and weekly time-frame. Hence, break and sustained trade below 40,800 levels could usher in a period of consolidation.

 

Among individual stocks, Mphasis, Persistent Systems, Tech Mahindra, L&T Technology Services (LTTS) and others declined up to 6 per cent in the intraday trade. The selling at these counters was also attributed to That apart, the fall in IT stocks was also attributed to reports that Accenture plans to push back the bulk of its staff promotions by six months. 

Against this backdrop here's a technical update on top 5 IT stocks listed on the BSE and NSE.

Infosys

Current Price: Rs 1,900

Pivot Point: Rs 1,845

Upside Potential: 10%

Downside Risk: 12.1%

Infosys chart pattern is in sync with the Nifty IT index, as the stock too is seen trading below its 20-DMA for the first time in one month. The daily chart shows presence of near support at Rs 1,876 followed by Rs 1,845. CLICK HERE FOR THE CHART

Break and sustained trade below Rs 1,845 can weaken the existing chart structure; post which the stock could potentially slide to Rs 1,720 - Rs 1,670 levels. On the positive front, as long as the stock manages to hold above Rs 1,900, it can attempt to scale new highs. The stock can potentially rally to Rs 2,090 levels; with interim resistance expected around Rs 1,945 and Rs 2,000-mark.

TCS

Current Price: Rs 4,387

Pivot Point: Rs 4,325

Upside Potential: 8.1%

Downside Risk: 10%

TCS seems to be on the brink of turning bearish, as the stock is not only seen trading below its short-term moving average, which stands at Rs 4,493, but also the lower-end of the Bollinger Bands on the daily scale. CLICK HERE FOR THE CHART

TCS stock has near support at Rs 4,355, and the pivot point for the stock will be Rs 4,325. Break and sustained trade below the same shall invite further trouble for the stock. On the downside, the stock could slide to Rs 4,130 with an outside chance of a dip all-the-way to Rs 3,950 levels.

For the stock to regain strength it will need to conquer its 20-DMA, and trade consistently above Rs 4,500. On the upside, the stock can potentially zoom to Rs 4,850 levels; with interim resistance seen at Rs 4,665 and Rs 4,740 levels.

 

HCL Technologies

Current Price: Rs 1,770

Pivot Point: Rs 1,665

Upside Potential: 7.3%

Downside Risk: 16.4%

The pivot point for HCL Technologies stands at Rs 1,665; for now the stock is seen testing support around its 20-DMA at Rs 1,762 levels, below which support is seen at Rs 1,726. In case, the pivot support breaks the stock could extend the fall towards Rs 1,565 and Rs 1,480 levels. CLICK HERE FOR THE CHART

For bullish bias, the stock needs to break and trade above Rs 1,815. Post which, the stock can potentially surge to Rs 1,900 levels; with interim resistance likely around Rs 1,810 and Rs 1,845 levels.

Tech Mahindra

Current Price: Rs 1,596

Pivot Point: Rs 1,555

Upside Potential: 11.8%

Downside Risk: 12.3%

Tech Mahindra is also trading below its 20-DMA and the stock now seems headed to test the all-important support at Rs 1,555 levels. As long as the support holds, the stock may look to bounce back above Rs 1,600 and revive the sentiment. On the upside, the stock can potentially rally to Rs 1,784; with interim resistance likely around Rs 1,637 and Rs 1,700.

On the flip side, break and sustained trade below the Rs 1,555 pivot can trigger a fall towards Rs 1,400 levels, with interim support seen at Rs 1,450. CLICK HERE FOR THE CHART

LTIMindtree

Current Price: Rs 6,293

Pivot Point: Rs 6,060

Upside Potential: 7.1%

Downside Risk: 10.3%

LTIMindtree stock is seen closing in on the 20-DMA support which stands at Rs 6,135; however, the pivot point for the stock will be Rs 6,060. Break and sustained trade below the same could lead to a slide to Rs 5,650 levels. CLICK HERE FOR THE CHART

On the positive front, the stock needs to sustain above Rs 6,265 for the positive momentum to prevail. On the upside, the stock can soar to Rs 6,740; with interim resistance seen at Rs 6,380 and Rs 6,515 levels.