Stocks in focus included Wipro, which fell 0.65%, Infosys, which rose 2.9% and LTIMindtree, whose shares rose 0.8% on Thursday.
Kushal Gandhi, technical analyst at Stoxbox, recommends what investors should do with these stocks when the market resumes trading today.
Wipro
Wipro’s share price shows a possible cup and handle pattern. However, the area around 557 is currently acting as an immediate supply zone, blocking any upward movement beyond the previous gap-down region.
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An extended handle indicates a sideways trend with no apparent momentum to break resistance. Therefore, we recommend staying away from buying Wipro at this time and suggest investing only after there is clear confirmation of a decisive recovery in the supply zone.
Infosys
Infosys’ price action exhibits the characteristics of a true market leader, showing significant outperformance compared to the Nifty50. After a significant bounce of 45% from its June 2024 low, the share price is currently consolidating near its all-time high.
This could signal potential accumulation that could strengthen the uptrend. Furthermore, the stock has shown reduced volatility over the past 50 trading sessions, along with positive signals from technical indicators like RSI and MACD, which are encouraging.
In its latest quarterly earnings announcement, the company posted growth across all metrics, though it fell short of analyst expectations. On the price front, a decisive close above the 1990 level would confirm a bullish breakout from the trending channel to its side, providing a clear directional bias. Therefore, we recommend buying the stock on confirmation of a breakout, with a target price of 2143 while maintaining a stop loss at 1881 to optimize the risk-to-reward ratio.
LTIMindtree
LTIM’s price action is currently exhibiting a potential multi-month rounding bottom pattern, indicating possible signs of a trend reversal.
The stock has shown lower volatility compared to the last 50 trading sessions, which is a positive development as it reduces the likelihood of erratic market movements. Additionally, the Relative Strength Index (RSI) in the daily and higher time frames is trading well above their respective medians, indicating significant momentum in price movement.
Further, the relative strength of the stock indicates that the price action is outperforming the Nifty in terms of relative performance, which is a favorable sign. We recommend buying LTIM for a target price of 6925 and maintaining a stop loss at 6415.
(disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. (These do not represent the views of The Economic Times)
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