IT Sector has broken out after long consolidation in a trading range. We will focus on stocks including TCS, Birla Soft, LTI and Wipro.
TCS
Price is trading above all moving averages. Nice consolidation is seen around neckline area. Cup & Handle pattern is formed and currently price has broken the resistance and retesting it as support.
On short term basis 8-10 % targets can be seen in the stock. Long term investors can stay invested in the stock for larger gains.
Option chain suggests call writers trapped and explosive move can be anticipated in the coming days.
Birla Soft :
Structure is looking very strong as price consolidated in narrow range and is currently trading above all moving averages. Rsi is clocked at 66 which indicates strength as well.Upside of 20 % can be seen in the stock in near term.
Larsen & Toubro Infotech :
Price has broken the range and is currently consolidating at the top of range taking support at 7000 levels. Stock can be bought for an upside of 12 % on short term basis. Long term can also b initiated at current levels.
Wipro :
Wipro is looking good for a upside of 10 % from current levels. price has broken the range and resistance has become support
