3 solid buys – Bullish on these Indian IT stocks

Published September 25, 2018

Out of the last 15 trading sessions, S&P CNX Nifty 50 index has closed in red in 10 of the sessions. However, investor sentiment for these three of the largest Indian IT stocks is nothing but positive. Buyers have constantly paid higher prices so that they do not miss the rally in these IT giants.

Tata Consultancy Servi (TCS.NS) Close: 2198.45

The largest Indian IT stock by market capitalization, Tata Consultancy Services, is trading at an all time high. Being the top gainer of the Nifty 50 components, the stock climbed around 5 percent to close at 2198.45 rupees in Monday’s trading session. TCS is in a rising trend channel in all time horizons, short, medium and long term. Volume balance and momentum indicator RSI are positive, which gives additional strength to the underlying trend. Further rise in price is indicated.
The stock has no resistance in the medium term, so it has higher chances to go up. In case of any correction, there is support between 2046 and 2000 in the short term. The stock is assessed as technically positive for the medium to long term.
Investtech's recommendation: Buy

HCL Technologies Limit (HCLTECH.NS) Close: 1096.30

HCL Technologies Limited is in a rising trend channel in the medium term. This shows that investors over time have bought the stock at higher prices and indicates good development for the company. HCLTECH yesterday broke above its earlier resistance of 1088 rupees and gave its highest closing ever. Further increase in price is suggested. There is support around 1020 rupees.
To look at indicators, RSI is above 70, which indicates that the momentum is strong and the stock is expected to continue to rise. We have done some research on the RSI indicator within four Nordic markets. The idea is that major price movements indicate that the investors as a group are in motion. It is thought necessary to join the early movements, as even more investors will join later and drive the price further in the same direction. More about this research can be read on our website here.
Investtech's recommendation: Buy

Wipro Limited (WIPRO.NS) Close: 332.70

WIPRO Limited has broken the upper trendline of the rising trend channel and the stock went up sharply by almost 6 percent in just over two weeks’ time. Wipro managed over time to break over its previous resistance of 332 rupees. Volume has previously been higher at price tops and lower at price bottoms. This strengthens the trend and is indicated by a positive volume balance. RSI above 70 shows that the stock has strong positive momentum which suggests that investors have steadily paid more to buy the stock. This indicates increasing optimism and that the price is expected to continue to rise. There is support around 300 levels.
Investtech's recommendation: Buy

The analyses are based on closing price as per September 24, 2018.