TCS, Infosys, HCL Technologies: Key support and resistance levels for these IT stocks

Domestic equity markets kicked-off saw a selloff on Monday, as investors turn cautious ahead of the kick start of third quarter results. The BSE Sensex tanked 670.93 points, or 0.93 per cent, to settle at 71,355.22. The NSE Nifty plunged 197.80 points, or 0.91 per cent, to end the day at 21,513.

A few IT stocks of Dalal Street namely Tata Consultancy Services Ltd, HCL Technologies Ltd and Infosys Ltd are likely to remain under the spotlight as Q3 IT earnings start pouring in from later this week. Here is what Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher has to say on these stocks ahead of Tuesday's trading session:

HCL Technologies | Resistance: Rs 1,500 | Support: Rs 1,400
HCL Tech has been moving sideways, maintaining support near Rs 1,420 level. The level of Rs 1,500 level is acting as the barrier. The stock would need a decisive breach above this level to indicate a breakout. With the Q3 results outcome expected this week, fluctuations can be anticipated and a break below Rs 1,400 would weaken the bias for the stock.

Tata Consultancy Services | Resistance: Rs 3,750 | Support: Rs 3,625
TCS peaked out near Rs 3,929 level after witnessing decent gains in the last two months. The stock has corrected to an extent and has a near-term support at Rs 3,625 zone (50-EMA level). From the prevailing levels, for the bias to improve, it needs to cross above the Rs 3,750 level decisively. One can expect further gains, provided the Q3 results turn out to be positive.

Infosys | Resistance: Rs 1,595-1,670 | Support: Rs 1,460
Infosys has resisted near Rs 1,593 level after a triangular pattern breakout. The stock witnessed a gradual slide but is currently trading above its 50-EMA level of Rs 1,485, with a positive bias. The stock needs to breach above the Rs 1,595 zone decisively to confirm a breakout and anticipate further rise with the next target visible at Rs 1,670 level. At the same time, a decisive break below Rs 1,460 shall weaken the trend and a further slide can be triggered.


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