Indian benchmark indices settled flat on Tuesday, rebounding from day's low. After China's stimulus package, key economic data from India and the US will guide the sentiments in the near-term. BSE Sensex added merely 1.59 points to end the session at 81,510.05. NSE's Nifty50 shed only 8.95 points or 0.04 per cent, to settle at 24,610.05 for the day.
Some buzzing IT stocks including Infosys Ltd, Birlasoft Ltd and Mphasis Ltd are likely to remain under the spotlight of traders for the session today. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:
Infosys | Resistance: Rs 2,222-2,500 | Support: Rs 1,875–1,870
The chart indicates that Infosys is forming a textbook-perfect cup and handle pattern on the longer time frame, with a breakout anticipated above the psychological hurdle of Rs 2,000. A decisive breakout above this level could unlock significant upside potential, with long-term targets of Rs 2,222 and Rs 2,500. On the downside, strong support is established in the Rs 1,875–1,870 zone, reinforced by the presence of the 20, 50, and 100 SMAs.
Mphasis | Resistance: Rs 3,500-3,650 | Support: Rs 3,000
The charts of Mphasis look highly promising, with a recent breakout from a falling channel pattern strengthening the counter. The mid-cap IT sector is outperforming the market, adding further momentum. The chart suggests a potential upside, with a target of Rs 3,500 levels in the short to mid-term. Currently trading well above key moving averages, the counter appears poised to approach its all-time high zone of Rs 3,650. On the downside, strong support is observed around the psychological level of Rs 3,000, which aligns with the 50 EMA.
Birlasoft | Resistance: Rs 650-700 | Support: Rs 600-580
Birlasoft appears to be bottoming out, forming a base near a critical support zone. It is currently consolidating around the 100 SMA, which is acting as an immediate hurdle. A breakout above the Rs 615 level would breach the neckline, potentially paving the way for an upside move toward Rs 650, where the 200 SMA is positioned. Beyond that, a sustained rally could extend toward the Rs 700 mark. On the downside, Rs 600 serves as immediate support, while Rs 580 is a crucial support level, reinforced by the 50 SMA.