Sector Spotlight: This analyst remains bullish on IT sector heavyweights for December series; picks 4 stocks for gains
Technical Analyst Nilesh Jain continues to be bullish on the It sector and puts his bet on the index heavyweights. He has been recommending IT stocks over the last 3-4 months. The spotlight remains on the IT sector, he added
Stock Markets were trading in the green on Thursday. While the BSE Sensex was trading at 58,178.32, gaining almost 493 points or 0.9 per cent from the Wednesday closing level, the broader market Nifty50 was up by almost 157 points at 17,324.15. The 50-share index was also up 0.9 per cent.
Most major indices were trading positively around 2:20 pm. Out of the 15 indices, 11 were trading in the green while the remaining 4 were trading in the red. The best performing indices around this time were Nifty IT and Nifty Oil & Gas which were up 1.5 per cent and 1.2 per cent respectively.
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Technical Analyst Nilesh Jain continues to be bullish on the It sector and puts his bet on the index heavyweights. He has been recommending IT stocks over the last 3-4 months. The spotlight remains on the IT sector, he added.
It was trading at 35,962.95 and has corrected significantly from the highs of 37,823.15 creating opportunities for investors to make gains in IT stocks. There is a strong support for this index around levels of 34,000, Jain said.
Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking was bullish expects it to test levels of 37,000 in the December series. This will be a breakout level of the falling channel, the AVP said. If this level is breached, it will go on to test 38,500.
He puts his money on IT large cap stocks Tata Consultancy Services Limited (TCS), Infosys Limited, HCL Technologies and Tech Mahindra.
TCS: Buy| LTP: Rs 3630| Target: Rs 3750| Stop Loss: Rs 3500| Upside 4%
TCS shares were trading positively on the NSE around this time. It was up 1.5 per cent from the Wednesday closing price. He said that it was one of his preferred stocks for buying on decline and even at current levels. The stock has seen a base formation after correction from the highs of 3989. The stock is showing trend reversal, he further said
Infosys: Buy| LTP: Rs 1744| Target: Rs 1850| Stop Loss: Rs 1680| Upside 6%
Infosys stocks were also trading in the green and gained as much as 1.7 per cent from the last closing price. It has also seen a base formation after correcting from the highs of 1848 and is seeing a trend reversal as well, Jain said.
HCL Tech: Buy| LTP: Rs 1181| Target: Rs 1300| Stop Loss: Rs 1100| Upside 10%
Another stock that was a preferred bet of this technical analyst. This stock was up 2.7 per cent on the intraday basis around this time. An upside of 10 per cent is open in this stock from current levels, he said. Buy on decline and at current levels is advised.
Tech Mahindra: Buy| LTP: Rs 1628| Target: Rs 1750| Stop Loss: Rs 1580| Upside 7.5%
Jain said that this is the best stock in the pack in terms of its strength on the technical charts. It is trading near its 52-week high of 1630 which the stock hit on 26 October. Buy on decline and at current levels is recommended, Jain said.
(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.)
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