TCS, Infosys, HCL Technologies: How to trade these 3 buzzing largecap IT stocks

Indian benchmark indices settled with big gains on Friday on the back of positive domestic and global cues, led by strong auto sales numbers. However, traders will be looking at Q3 earnings later this month beside US strikes on Venezuela. BSE Sensex soared 573.41 points, or 0.67 per cent, to settle at 85,762.01, while NSE's Nifty50 jumped 182 points, or 0.70 per cent, to close at 26,328.55 for the day.

Select buzzing IT stocks including Tata Consultancy Services Ltd (TCS), HCL Technologies Ltd and Infosys are likely to remain under the spotlight of traders for the session today. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on them ahead of Monday's trading session:

HCL Technologies | Hold | Target Price: Rs 1,720-1,760 | Stop Loss: Rs 1,600

HCL Tech has taken support at the 50-days SMA (Rs 1,613) on the daily charts and has given a positive close above it. At present, the stock is underperforming the benchmark indices but the momentum indicator RS is positively poised. This suggests that momentum on the upside is likely to continue. Based on prevailing technical indicators, traders are advised to hold their positions at the current levels, while maintaining a strict stop loss at Rs 1,600. The stock has potential for an upward move and may attempt to test the target zone of Rs 1,720-1,760 over the coming weeks to months.

Infosys | Hold | Target Price: Rs 1,700-1,730 | Stop Loss: Rs 1,610

Infosys Ltd has taken support at the 20-days SMA (Rs 1,623) on the daily charts and has given a positive close above it. At present, the stock is underperforming the benchmark indices but the momentum indicator MACD is positively poised. This suggests that momentum on the upside is likely to continue. Considering these technical factors, traders are advised to hold their positions at the current levels, while maintaining a strict stop loss at Rs 1,610. The stock has potential for an upward move and may attempt to test the target zone of Rs 1,700-1,730 over the coming weeks to months.

Tata Consultancy Services | Hold | Target Price: Rs 3,345-3,390 | Stop Loss: Rs 3,198

TCS has marginally reclaimed the 200-days SMA (Rs 3,244) on the daily charts, which is a positive sign. At present, the stock is underperforming the benchmark indices but the momentum indicator MACD is positively poised. This suggests that momentum on the upside is likely to continue. Considering these technical factors, traders are advised to hold their positions at the current levels, while maintaining a strict stop loss at Rs 3198. The stock has potential for an upward move and may attempt to test the target zone of Rs 3,345-3,390 over the coming weeks to months.