The stock markets were trading deep in the red on Monday and the sectoral indices were also down taking cues from the broader markets. Nifty IT was down by almost 2.3 per cent around 1:20 pm and was trading at 26,734.60 with all the stocks trading in the red. Technical Analyst Nilesh Jain Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said that IT stocks were seeing some profit booking. Ahead of the Q4 FY21 results, Jain recommends this on TCS. He also tells what to do with Infosys and Mindtree Shares.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

See Zee Business Live TV Streaming Below:

TCS Shares – TCS shares were trading at Rs 3274. 95 on the NSE around this time, going down by almost Rs 47 or 1.4 per cent from the previous closing price of Friday. Jain said that the results are expected to be good and as per the market expectations. TCS stock has had a good run and the price movements with respect to the earnings results have already been discounted, he said. The stock may not see big price movements after the declaration of the results, he further said.  

Today’s correction is not just because of the current market sentiment, but also because the investors are looking to book profits, he said. His advice is not to buy at current levels. The right levels to take a long position is around 3200, he said. He puts the stop loss at Rs 3050 wile the target price between Rs 3400 and Rs 3500. It hit a 52-week high of 3354 on 9 April 2021. 

Infosys shares – Infosys share price fell by almost 0.9 per cent or Rs 13 on the NSE and was trading at Rs 1427.85 around this time.  It also attained its 52-week high levels today at Rs 1477.55. This stock was also witnessing some profit booking. Jain’s view on this stock was positive. There is a strong support at Rs 1320. He recommends buying on further correction. He puts the stop-loss at Rs 1300 while the target price between Rs 1480 and Rs 1500.  

Mindtree shares – This share achieved its 52-week high levels of Rs 2275.95 on the intraday basis before seeing a correction. Mindtree was down by over 3.7 per cent or Rs 84 around this time. It was trading at Rs 2142.90 on the NSE. Jain said that he did not have much conviction on this stock as of now. It is more volatile that its above two peers, he added.  

He advises against any fresh long positions. Those who want to take a long position can wait till levels around Rs 2050. He puts the stop-loss at Rs 1950. He put the target price at Rs 2250 which is also a major resistance level. Existing investors can continue with their long positions.