D-Street Buzz: IT stocks rally led by HCL Tech, TCS, Infosys; Coforge hits 52-week high

After a brutal beating on September 24, the Indian stock market has been trading on a handsome note largely aided by IT stocks.

Sensex is up 687.47 points or 1.88 percent at 37241.07, and the Nifty was up 197.10 points or 1.82 percent at 11,002.60, at the time of writing this copy.

Among the sectors, the IT index gained over 3 percent led by HCL Tech which jumped over 5 percent followed by Tata Consultancy Services which added 4 percent. Other gainers are Infosys, Mindtree, Tech Mahindra and Wipro each rising over 2 percent.

Tata Consultancy Services partnered with Maurices, a fashion-apparel retail chain, a women’s fashion-apparel retail chain in the US and Canada, to help create a new flexible and scalable IT landscape for the latter.

Shitij Gandhi, Senior Technical Analyst at SMC Global Securities has a buy on TCS with target price at Rs 2,775. On the derivatives front, a long build-up in the prices has been observed which could trigger further upside momentum in the prices. Secondary oscillators are also showing positive divergences on the charts, he said.

HCL was the most active stock on NSE in terms of volumes with 1,37,11,794 shares being traded followed by TCS (58,61,938) and Infosys (79,47,822).

Share price of Coforge, formerly know as NIIT Tech, spiked over 6 percent and has hit 52-week high. It was ltrading at Rs 2,247.20, up Rs 134.00, or 6.34 percent.

Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services also feels IT will stand-out tall this year as one of the few sectors as far as Q2 earnings are concerned.

Ashish Chaturmohta, Head of Technical and Derivatives, Sanctum Wealth Management is of the view that Infosys can rally towards Rs 1100-1140 levels. The stock has been in an uptrend since the March low of Rs 509 forming a higher top and higher bottom on the daily chart. Currently, the stock is consolidating its gains at an all-time high level.

Now, as long as it holds above Rs 1000 levels, the stock can rally towards Rs 1100-1140 levels. On the downside, the immediate support is seen at Rs 970 and then towards Rs 900 levels.