Stocks to Buy and Avoid: Key Pivot Levels for IT Stocks Ahead of FOMC
Market Outlook and Technical Picks for IT Stocks
The Nifty IT index has faced a substantial decline, down 3% to 42,200 levels due to profit-taking just before the Federal Reserve's policy decision. Currently, it trades below its 20-DMA for the first time since August 18, 2024, indicating potential consolidation. Key support is noted at 41,490 followed by 40,800. The market sentiment is influenced further by a reported delay in staff promotions at Accenture.
Top 5 IT Stocks to Watch
- Infosys: Current Price: Rs 1,900, Pivot Point: Rs 1,845. Upside potential is 10%, while downside risk is 12.1%.
- TCS: Current Price: Rs 4,387, Pivot Point: Rs 4,325. Expected upside is 8.1%, with a downside risk of 10%.
- HCL Technologies: Current Price: Rs 1,770, Pivot Point: Rs 1,665. Upside potential stands at 7.3% and downside risk at 16.4%.
- Tech Mahindra: Current Price: Rs 1,596, Pivot Point: Rs 1,555. The upside potential is 11.8%, against a downside risk of 12.3%.
- LTIMindtree: Current Price: Rs 6,293, Pivot Point: Rs 6,060. Upside potential is 7.1%, and downside risk is at 10.3%.
Trading Strategies for IT Stocks
Traders should closely monitor these pivotal levels: breaking below the established points could trigger further declines, while holding above may give way to upward momentum in these stocks.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.