IT Back In The Mix 2

JC Parets
April 6, 2021

Two weeks back we had noticed IT putting its head again from underground and shared some actionable ideas. As the market progresses, we're noticing new names joining this list and thought it would be nice to have a follow-up post for the same.

Let's see what these stocks are indicating for the weeks and months ahead.

HCL Tech has now joined the other stocks in this sector as it attempts to move past its overhead supply zone of 1,024. Retreating from the same level twice in the recent past, we might see a follow-through this time around as the tailwinds favouring IT could favour this particular stock as well. The indicator is attempting to move back into the strong zone.

We are bullish above the level of 1,024 with a target near 1,425.

Click on chart to enlarge view.

Next up is Infosys. The price has held on to its breakout above the level of 1300 for a while now. If the momentum continues to climb higher, there is no reason why Infy should be left behind as the rest of the IT sector powers through!

We are bullish above the level of 1,300 with a target near 1,790.

Mphasis is making its way back into the actionable ideas. The price has consolidated at current levels but looks ready to move towards the next level as the indicator continues to display bullish momentum on the monthly chart. What is nice to see is that the price holds on to new all-time highs rather than slipping below those levels instantly. This shows a healthy build-up in the stock.

We are bullish above the level of 1,670 with a target near 2,310.

FSL was part of our Trade of the Week idea when it broke out above 84. With the stock knocking against its next resistance and the indicator trading in the bullish momentum zone, another breakout is just around the corner. The price has held on to its higher levels and looks good for the next leg of the rally.

We are positive above the level of 123, with a target near 187.

Birla Soft is inching close to its next overhead resistance. The indicator has been making a run towards the bullish momentum zone again and it will be interesting to see how the price action pans out in the weeks ahead.

We are positive above the level of 288 with a target near 437.

Another name that's on our radar is Eclerx Services. The stock has recovered smartly from lower levels. It is currently at a crucial resistance that may be taken out with the ensuing move. Notice how the momentum is in bullish territory compared to the last two breakout attempts at the same level. This indicates strength within this stock and we are tracking it to see the move going forward.

We are bullish above the level of 1,152 with a target near 1,668.

The above-mentioned stocks have joined their counterparts in the current strong move we're witnessing in the IT sector. Going forward it will be interesting to see how these sectors and stocks will perform as the market rally progresses.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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