Dalal Street stocks advanced on Wednesday amid the expiry of March series F&O derivative contracts. The BSE Sensex jumped 345 points, or 0.60 per cent, to settle at 57,960.09. Nifty rose 129 points, or 0.76 per cent, to 17,080.70. Technology stocks including Tata Consultancy Services (TCS), Infosys and Wipro were on traders’ radar. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Friday’s trading session:
Tata Consultancy Services | Sell | Target Price: Rs 2,900 | Stop Loss: Rs 3,530
Tata Consultancy Services (TCS) has broken out of a rising channel formation on the weekly chart. It is maintaining a lower top- bottom formation for three weeks now. Inclining peak of histogram below zero reference line is also highlighting negative sentiment for the scrip. However, the daily Stochastic oscillator rebounded from the oversold zone, suggesting a pullback. At current levels, we may see pullback towards Rs 3,280-3,300 zone where the stock could face a stiff resistance. Hence one can look for a sell opportunity around the mentioned zone for the downside target of Rs 2,900, which is near 200-DMA, with a stop loss placed at Rs 3,530 on a closing basis.
Infosys | Caution | Resistance: Rs 1,540 | Support: Rs 1,330
Infosys has given horizontal line breakdown after witnessing swing high of Rs 1,620. It has fallen more than 15 per cent from its recent swing high. The sharp selloff has dragged the stock below all its significant moving averages. Going ahead, if the support zone of Rs 1,350-1,330 is protected, an oversold bounce shall be expected towards Rs 1,540 level at 20-DMA, where a key resistance stands. On the flip side, a failure to hold the mentioned support would weaken the stock further and it can slip towards the Rs 1,250 level, which is its 200-DMA level.
Wipro | Sell | Target Price: Rs 320 | Stop Loss: Rs 380
Wipro’s stock price has given a consolidation breakdown on the weekly chart, with lower high-low formation following a negative crossover of 100- and 20 day- simple moving averages. At the same time, the MACD histogram hovers in the negative territory whereas the weekly RSI has given bearish crossover. Overall, bearish signals are visible on daily and weekly charts. Until the stock gives a decisive close above Rs 375-380 zone, the scrip will continue to slip lower towards Rs 330-320 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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