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: stocks to buy
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 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.
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.
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.
