Indian stock markets were trading with strength on Tuesday, taking cues from their US peers which settled in the green on Monday. The Wall Street rally was on the hope that the US Federal Reserve could ease subsequent interest rate hikes after weak economic data in the US dashed prospects of growth, even further.

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The BSE Sensex was trading at up by 1199.14 points or over 2.11 per cent and trading at 57,987.95 ahead of Dussehra festivities and earnings season which begins this week. Meanwhile, the 50-hare Nifty50 index was trading at 17,259.70, gaining 370 points or 2.20 per cent from the Monday closing.

All 15 sectoral indices were trading positively at 1:35 pm with, Nifty Auto and Nifty Metal (3.20 per cent), Nifty Bank (2.78 per cent) and Nifty IT (2.76 per cent) being the top gainers.

IT sector will now come under the spotlight as three large cap companies will be announcing their Q2FY23 results next week. IT bellwether Tata Consultancy Services (TCS), HCL Technologies, Wipro and Infosys will be announcing their results on 10 October, 12 October and 13 October.

In the 10-stock Nifty IT index, all the stocks were in the green around this time. The top gainers were Coforge, TCS and Larsen & Toubro Infotech which were up 3.48 per cent, 3.26 per cent and 3 per cent, respectively.

Technical expert Nilesh Jain said that IT has been a laggard and is now poised for a pull back. He said that Nifty IT index has seen a base formation with a double bottom at 26200. This index was trading at 27,446.35 around this. There is an upside for levels between 28000 and 28,500, Jain said. While, weak US data was a trigger for global markets today, Jain said that IT sector has been a big underperformer.

He recommended three stocks with a 10-15 days view on declines.

TCS: Buy| LTP: Rs 3,082.20​| Target: Rs 3200| Stop Loss: Rs 3000| Upside 4%

His first stock is TCS for a price target of Rs 3200 and a stop loss of Rs 3000. The stock was trading at Rs 3,082.20 at the time of recommendation, up by 3.26 per cent from the previous closing on Monday. TCS will be the first to announce its results on 10 October.

Infosys: Buy| LTP: Rs 1429​| Target: Rs 1500| Stop Loss: Rs 1380| Upside 5% 

Another stock recommended by him for a price target of Rs 1470 and 1500. The support is seen at Rs 1380, this analyst said. It will announce is Q2 results on 13 October. The second largest IT company by market cap was trading at 1429, up by 2.54 per cent.

Wipro: Buy| LTP: Rs 405​| Target: Rs 425| Stop Loss: Rs 390| Upside 5% 

Buy Wipro for a price target of Rs 425, Jain said with a stop loss of Rs 390. A base formation has taken place at this level, he reasoned. The stock was trading at 405.10 and was up 2.7 per cent from the Monday closing price.   

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)