By earn 
NIFTY IT index, after forming a double top, experienced a minor correction, shedding about 0.50% to reach a retracement level of 32,500. This movement suggests a potential turnaround as the index approaches a critical juncture at the 200-day moving average (DMA) of 33,700. Should it decisively breach this level, the outlook for the index could turn increasingly bullish.
Reinforcing this positive outlook is the emergence of a positive RSI divergence, typically a harbinger of upward momentum. Investors might consider this a cue to focus on specific IT stocks and ETFs such as ITBEES. Here’s a look at some promising IT stocks to watch:
- Tata Consultancy Services (TCS): Currently priced around 3,981 with support at 3,850, TCS shows potential to rise to a target of 4,200, backed by solid fundamentals and strong market presence.
- Wipro: With a current price of 463 and support at 450, Wipro has a higher target of 529, reflecting its robust business model and strategic expansions.
- Tech Mahindra: Priced at 1,286 with a support level at 1,220, it is targeting 1,400, propelled by its innovative solutions in digital transformation.
- HCL Technologies: At 1,339 with strong support at 1,200, HCL Technologies aims for a target of 1,550, driven by its diversified IT services.
- Happiest Minds Technologies: This smaller cap stock, trading at 833 with support at 800, has a near-term target of 880, benefiting from its focus on digital technologies.
These stocks represent a mix of large-cap stability and mid-cap growth potential within the IT sector, reflecting underlying strengths such as innovation, global reach, and strategic sector positioning. Investors should consider these factors along with technical indicators to make informed decisions.
