As the Federal Reserve prepares for a potential rate cut, IT stocks have shown notable volatility, impacting share market investment strategies. The NSE Nifty IT index experienced a sharp decline, dropping 3% to 42,200 levels due to profit-taking just before the Fed's decision. Meanwhile, the NSE Nifty 50 index remained relatively flat at 25,400 levels.
Technical analysis of IT index and support levels
The Nifty IT index recently fell below its 20-DMA (Daily Moving Average) for the first time since its breakout on August 18, 2024. Immediate support levels are at 41,490 and 40,800. A sustained drop below 40,800 could signal a period of consolidation, with key momentum oscillators showing negative divergence. For investors in the share market, tracking these pivot levels is crucial to navigate potential volatility.
Infosys: Pivot points and market outlook
Infosys is trading below its 20-DMA for the first time in a month, mirroring the broader Nifty IT index trend. The stock has near-term support at ₹1,876 and critical support at ₹1,845. A breach and sustained trading below ₹1,845 could lead to a decline towards ₹1,720 - ₹1,670.
Conversely, maintaining above ₹1,900 could see the stock targeting ₹2,090, with interim resistance at ₹1,945 and ₹2,000. This makes it an important share market investment to monitor closely.
TCS: Navigating bearish trends and resistance levels
TCS is showing bearish signals, trading below its short-term moving average of ₹4,493 and the lower end of the Bollinger Bands. Immediate support stands at ₹4,355, with a critical pivot point at ₹4,325. A decline below this pivot could push the stock towards ₹4,130 or even ₹3,950.
For a bullish reversal, TCS needs to overcome its 20-DMA and sustain above ₹4,500, potentially rallying to ₹4,850 with resistance around ₹4,665 and ₹4,740. This makes TCS a significant consideration in share market investment.
HCL Technologies: Support and resistance dynamics
HCL Technologies is testing support at ₹1,762, just below its 20-DMA. The pivot point is set at ₹1,665, and a drop below this could see the stock declining to ₹1,565 or ₹1,480.
For a positive outlook, the stock must break above ₹1,815, potentially rising to ₹1,900 with interim resistance at ₹1,810 and ₹1,845. Investors should factor in these levels when making share market investment decisions.
Tech Mahindra: Support testing and potential rally
Tech Mahindra is trading below its 20-DMA and testing the crucial support at ₹1,555. Holding this support could enable a rebound above ₹1,600, with potential gains up to ₹1,784 and interim resistance at ₹1,637 and ₹1,700.
A drop below ₹1,555 could trigger a decline towards ₹1,400, with interim support at ₹1,450. This stock's pivot levels are crucial for anyone involved in share market investment.
LTIMindtree: Key support and resistance points
LTIMindtree is nearing its 20-DMA support at ₹6,135, with the pivot point at ₹6,060. A sustained break below this level could lead to a fall to ₹5,650. To maintain a positive trend, the stock must stay above ₹6,265, with the potential to rise to ₹6,740.
Resistance levels are observed at ₹6,380 and ₹6,515. These pivot levels are essential for share market investment decisions.
In summary, tracking these pivot levels is critical for share market investment, especially as the Federal Reserve's rate cut decision looms.
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