TCS, Infy, HCL Tech: How to trade IT stocks ahead of Q3 results? Key levels

The Nifty IT index outperformed the Nifty 50 and the broader index in the second-half of 2024 with a gain of nearly 20%. Key levels to track on IT shares ahead of Q3 results.

In less than a week from now, IT major - Tata Consultancy Services (TCS) will kick-off the Q3 earnings season on Thursday January 9, 2025. IT as a sector has outperformed the benchmark and the broader market in the second-half of the calendar year 2024.  The Nifty IT index rallied almost 20 per cent in the last six months, and quotes within striking distance (less than 3.5 per cent shy) of its all-time high of 46,088. In comparison, the NSE Nifty 50 index had declined 1.5 per cent in the July - December period; while the broader Nifty 500 index dipped 0.8 per cent.  Next week, other than TCS, another Tata-group firm - Tata Elxsi too will be announcing its December quarter earnings on Thursday. It shall be followed by other major players - HCL Technologies on January 13, Larsen & Toubro Technology Services (LTTS) on January 15, Infosys on January 16 and Tech Mahindra on January 17.  However, TCS is likely to set the tone for the IT sector with its earnings as early as next week. As such here's how these major IT shares are placed on the technical charts for now.  Nifty IT  Current Level: 44,263  Upside Potential: 6.4%  Support: 43,266; 42,086  Resistance: 44,560; 45,728; 46,400  The Nifty IT index has been making higher-highs and higher-lows on the medium-term and long-term charts. Recently, the IT index tested support around its 20-WMA (Weekly Moving Average) at 42,806 - a key indicator the index has been holding since late June. Near support for the index exists at 43,266. CLICK HERE FOR THE CHART  On the daily scale, however, the IT index is seen struggling below the 20-DMA (Daily Moving Average), which stands at 44,560; above which the key resistance stands at 45,728. The IT index needs to break and trade consistently above 45,728 in order to regain the upside momentum. On the upside, the index can potentially rally to surge to a new high around 47,115; with interim resistance seen at 46,400 levels.    TCS  Current Price: Rs 4,132  Upside Potential: 11%  Support: Rs 4,119; Rs 3,955  Resistance: Rs 4,268; Rs 4,380  TCS is seen trading below the short-term moving averages on the daily scale. The stock, however, seems to be finding support around the 200-DMA at Rs 4,119. Similarly, on the weekly scale, the stock has consistently found support around its super trend line in the last six months during times of volatility. The weekly super trend line support stands at Rs 3,955. CLICK HERE FOR THE CHART  As such, TCS is expected to trade with a favourable bias as long as the above mentioned support levels are protected. On the upside, TCS stock needs to break and trade consistently above Rs 4,268 to gain strength. On the upside, the stock can potentially surge to Rs 4,585 levels; with interim resistance seen at Rs 4,380.  Infosys  Current Price: Rs 1,935  Upside Potential: 16%  Support: Rs 1,885; Rs 1,870  Resistance: Rs 2,000; Rs 2,040; Rs 2,107; Rs 2,177  In spite of the recent volatility, Infosys has managed to sustain above its 20-WMA for the 9th straight week. The 20-WMA support stands at Rs 1,885 - this also coincides with the 100-DMA support on the daily scale; below which near support for the stock exists at Rs 1,870. CLICK HERE FOR THE CHART  On the upside, the stock needs to break and trade above Rs 2,000 for further gains to emerge. As such, Infosys can potentially rally to Rs 2,245 levels; with interim resistance expected around Rs 2,040; Rs 2,107 and Rs 2,177.    HCL Technologies  Current Price: Rs 1,961  Upside Potential: 21.6%  Support: Rs 1,930  Resistance: Rs 2,035; Rs, 2,095; Rs 2,200; Rs 2,295  HCL Technologies is seen trading above the key moving averages across time-frames - daily, weekly and monthly. Further, the key momentum oscillators have shown a positive crossover on the daily scale. Hence, the stock is expected to trade with a favourable bias in the near-term. CLICK HERE FOR THE CHART  On the upside, the stock can potentially zoom to Rs 2,385; with interim resistance expected around Rs 2,035; Rs 2,095; Rs 2,200 and Rs 2,295 levels. In case of a dip, the stock is likely to find support around its 20-DMA at Rs 1,930.  Tech Mahindra  Current Price: Rs 1,697  Upside Potential: 7.3%  Support: Rs 1,640  Resistance: Rs 1,709; Rs 1,742  Tech Mahindra is seen struggling around its short-term moving averages of Rs 1,742 and Rs 1,709 - the 20- and the 50-DMA, respectively, since the last three weeks. The key momentum oscillators across time-frames indicate a mixed outlook for the stock. CLICK HERE FOR THE CHART  Tech Mahindra needs to break and trade above the 20-DMA for a likely pullback towards Rs 1,820. On the downside, sustained trade below Rs 1,700 can drag the stock to Rs 1,640 levels.