Positive global cues, monsoon to begin on no time and strong support from 11,765 levels triggered the Indian benchmark and it had a gap up opening in today’s morning session. The index had an optimist opening but didn’t sustain at higher levels and drag to an intraday low of 11,871.45 levels after witnessing some long liquidations. Where all indices are losing their shine or bleeding, IT stocks are standing stalwart and gained 1.42% in today’s session. On daily scale, Nifty IT is trading near the kissing distance of its strong resistnace that is placed at 16,333.80 levels. The index had a gap up opening today led by rally in NASDAQ and continued to sustain at higher levels. The counter is expected to continue to continue its bullish momentum and find resistance near 16,750 levels. The index is trading above 30 days Exponential moving average. RSI is hinting for more upside showing no signs of divergence and overbought scenario while MACD has given a bullish crossover. Although Relative Strength Index and MACD are not the only indicators to dictate the future prices, one can make use of other tools like Fibonacci, Andrew Pitchfork, Chart and Harmonic Patterns.
Some stocks of this counter are also witnessing heavy volumes and momentum that are convincing the emerging trend.
- Tech Mahindra: Top gainer in IT stocks is trading at 765.4, 2.07% above from its previous close. The stock is trading above 200 days Exponential Moving average. There has been a block deal of 148,227 shares on May 22, 2019. The company sees the adaptation of 5G technology as a big opportunity and has commenced its trials in US markets.
- Infosys: India’s giant IT stock has gained 753.15, 1.85% above from its previous close. There has been a block deal of 448,447 shares on June 06, 2019. The stock is trading above 50 days Exponential Moving average.
- Tata Consultancy Services: Stock with highest market capitalization has gained 2.02% in today’s session. There has been a block deal of 22,700 shares in morning session today.