Wipro, LTIMindTree, Tech Mahindra: How to trade these IT stocks amid results buzz?

Domestic stock markets extended gains on Wednesday, led by buying in select pockets. The BSE Sensex rose 169.87 points, or 0.28 per cent, to settle at 60,300.58. The NSE's Nifty gained 44.35 points, or 0.25 per cent, to close at 17,813.60.

Select result-bound IT stocks including Tech Mahindra, Wipro and LTIMindtree were under the limelight during the day. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:  

Tech Mahindra | Sell | Target Price: Rs 900 | Stop Loss: 1,050
Tech Mahindra has been battered in the last couple of weeks due to a poor set of quarterly results from peer IT companies. The scrip has been fallen 15 per cent from its recent swing high of Rs 1,164. The sharp sell-off has led the price to drop towards its prior multi-month support zone of Rs 985-995. Around the similar juncture, the stock has formed a ‘Hammer’ candlestick reversal pattern, but it failed to carry out the momentum further. Going ahead ,if the mentioned support zone is breached decisively, selling pressure would get intensify and one may expect Rs 900 level in the near term.

LTIMindtree | Sell | Target Price: Rs 3,800 | Stop Loss: 4,360
LTIMindtree has decisively broken out of the lower threshold of a horizontal support line on the daily timeframe, with a large bearish candle. The stock is trading below its 20-, 50-, 100- and 200-SMA on the daily time frame, which supports the bearish view. Momentum oscillator RSI (14) is trading below 40 on the weekly scale, indicating weakness. These factors indicate that a bearish move on the counter is possible for targets of up to Rs 3,830-3,800 level. One can initiate a sell trade in the Rs 4,155-4,165 range with a stop-loss above Rs 4,360 on a daily closing basis.

Wipro | Range-bound | Resistance: Rs 400 | Support: Rs 350
Wipro's stock remained sideways in the last few weeks and failed to give any directional move. On the daily chart, prices are facing stiff resistance around Rs 385-400 zone where 20-, 50- and 200-DMA are also placed. The daily RSI is also hovering near the 50-mark, suggesting ambiguity. On the downside, the stock formed a base at Rs 360-350 levels.  Hence, a decisive move in either of side is required for the stock to show a unidirectional move.


(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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