KPIT Tech, LTTS, Tata Elxsi: What are the key levels for these midcap IT stocks?

Domestic stock market kicked off the truncated week on a high note, thanks to firm global cues. The gains were, however, capped.  On Monday, the BSE barometer Sensex added 115 points, or 0.19 per cent, to settle at 59,106.44. The NSE 's Nifty advanced 38.30 points, or 0.22 per cent, to 17,398.05.

The session saw midcap IT stocks buzzing, thanks to JPMorgan report that suggested a 44 per cent downside potential for KPIT Technologies. KPIT Tech  and other midcap IT stocks took a beating for the day. Here is what Vaishali Parekh, Vice President- Technical Research at Prabhudas Lilladher has to say on a few of the midcap IT stocks ahead of Wednesday's trading session:

KPIT Technologies | Resistance: Rs 820| Support: Rs 730
KPIT Tech has witnessed a steep fall from Rs 940 level. The negative bias has weakened the trend and the near-term support for the stock stands at Rs 730. This is the level where KPIT needs to consolidate, technically. The trend has turned weak, as KPIT Tech has breached below the important 50-EMA level of Rs 820. It’s a wait and watch scenario for the stock. A major consolidation band was previously seen within the range of Rs 680-Rs 730 zone. This is where we expect the stock to show some stability.

Tata Elxsi | Resistance: Rs 6,290 | Support: Rs 5,880
Tata Elxsi has underperformed against its peers and is hovering near Rs 5,990 level, with not much improvement in sight. For the bias to improve, the stock needs to cross at least the significant 50-EMA level of Rs 6,290 to establish some conviction for further upward move. The RSI is hovering near the oversold zone and chances of a pullback in the coming days cannot be ruled out. As of now, the near-term support lies near the Rs 5,880 level.
 

L&T Technologies Services | Buy | Target Price: Rs 3,650-3,700 | Stop Loss: Rs 3,280
L&T Technologies Services (LTTS) has attained the long-time trendline support near Rs 3,300 zone and indicated a pullback. The sentiment, along with the RSI are showing a trend reversal from the oversold zone. A decisive move past the confluence of moving averages of 200-DMA and 50-EMA near the Rs 3,560 level would further strengthen the trend for further rise in the coming days. One can buy this stock for an upside target of Rs 3,650-3,700, keeping the stop loss placed at Rs 3,280 level.  


(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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