Birlasoft, eClerx, Persistent Systems: IT stocks to trade — Check key levels, targets & stop loss

Indian equity benchmark indices managed to post big gains on Tuesday on the back eased bond yields, stability in the Indian rupee, and upbeat earnings from largecaps. Expectations of eased taxation also bolstered the sentiments. The BSE Sensex zoomed 1,109.10 points, or 1.54 per cent, to end at 73,033.78, while NSE's Nifty50 soared 358.60 points, or 1.60 per cent, to settle at 22,721.95 for the day.

Select buzzing IT stocks including eClerx Services, Persistent Systems Ltd and Birlasoft Ltd are likely to remain under the spotlight of traders for the session today. Here is what Vaishnavi Jagtap, Senior Technical Research Analyst at Axis Direct has to say about these stocks for Wednesday's trading session:

Birlasoft | Buy | Target Price: Rs 320-335 | Stop Loss: Rs 285
Birlasoft Ltd has decisively surpassed the past 6-7 months 'down-sloping trendline' breakout at Rs 293 levels with the current session's strong upmove, indicating a short-term trend reversal. This breakout is accompanied by huge volumes, indicating increased participation. The stock has recently recaptured the 20, 50, and 100-day SMAs and rebounded sharply. The positive divergence on the daily RSI signifies rising strength at lower levels. The daily and weekly RSI is in favourable territory, indicating rising strength across all time frames. The daily Bollinger Band buy signal indicates increased momentum. Investors should consider buying, holding, and accumulating this stock. Its expected upside is Rs 320-335, and its downside support zone is the Rs 290-285 level.

eClerx Services | Buy | Target Price: Rs 2,060-2,120 | Stop Loss: Rs 1,910
With the current close, eClerx Services Ltd has surpassed the past couple of months 'down-sloping trendline' resistance at Rs 1,952 on a closing basis, accompanied by huge volumes. The stock is well placed above its 20, 50, 100 and 200-day SMAs. These averages are also inching up with the price rise, which reconfirms the bullish trend. The daily, weekly and monthly RSI is in favourable territory, indicating rising strength across all time frames. Investors should consider buying, holding, and accumulating this stock. Its expected upside is 2060-2120, and its downside support zone is the Rs 1930-1890 level.

Persistent Systems | Buy | Target Price: Rs 6,150-6,300 | Stop Loss: Rs 5,815
Persistent Systems Ltd is trending higher on the daily and weekly charts, forming higher tops and bottoms. With the current close, the stock has decisively surpassed multiple resistance zones of Rs 5,700-5,800 on a closing basis, indicating a strong comeback by the bulls. The average rising volumes reconfirm the increased participation in the rally. The daily Bollinger Band buy signal indicates increased momentum. The daily, weekly and monthly RSI is in favourable territory, indicating rising strength across all time frames.  Investors should consider buying, holding, and accumulating this stock. Its expected upside is Rs 6,150-6,300, and its downside support zone is the Rs 5,850-5,780.