Wipro, Tech Mahindra, HCL Tech: How to trade these IT stocks ahead of Q4 results?

Domestic stock markets snapped the nine-day winning streak on Monday, thanks to a selloff in IT stocks following a soft set of quarterly numbers from software exporter Infosys. Sensex declined 520.25 points, 0.68 per cent, to 59,910.75. Nifty dropped 121 points, or 0.68 per cent, to 17,706.86.

Weak Q4 results by Infosys dragged the IT pack with stocks such as Tech Mahindra, Wipro and HCL Technologies taking a hit ahead of quarterly results. Here is what Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher has to say on these stocks ahead of Tuesday's trading session:

Tech Mahindra | Buy | Target Price: Rs 1,110-1,125 | Stop Loss: Rs 990

Shares of Tech Mahindra have been moving within a tight range for quite some time since July 2022 resisting near Rs 1,160 levels. They are maintaining support of Rs 990 level. After a weak opening on Monday, the stock came near the base of the range. One can pick the stock, keeping the stop loss of Rs 990, and expect for some further upward move till Rs 1,110-1,115 levels.

Wipro | Cautious | Resistance: Rs 398-400 | Support: Rs 380

Wipro has slipped further to touch the low of Rs 352 level, which is the support base of the descending channel pattern on the daily chart from where the scrip witnessed a pullback. One can expect for some further upward move with a resistance near the 50 EMA level of Rs 380. A breach of the same can push the stock towards the next target of 200-DMA level at Rs 398-400 zone.

HCL Technologies | Buy | Target Price: Rs 1,110-1,120 | Stop Loss: Rs 1,000

HCL Technologies has fallen below the 200DMA level of Rs 1,030 and has come near the crucial support zone of Rs 1,010 level from where one can anticipate some pullback and improvement in bias. One can buy and accumulate the stock near the mentioned support zone and expect an upward move till Rs 1,110 -1,120 levels, keeping a strict stop loss at Rs 1,000 level.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)

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