Q4 FY21 result season will begin with TCS, the leader in the IT sector, declaring its results today.  Infosys and Wipro will follow TCS later this week. TCS will set the tone for the IT sector. Many Analysts believe there could be defensive buying in the IT Sector if the market sees sharp fall due to Covid concerns resurfacing. Work from Home culture is increasingly going to benefit the IT sector, says analysts.

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View on TCS share price: Buy TCS with a target of Rs 3670 with a Stop-Loss of Rs 3070

Ashis Biswas, Head of Technical Research at CapitalVia Global Research says that he expects TCS to report a higher single digit (YoY) growth in revenue (in rupee terms) for the March quarter. Further he expects the company to benefit from cross currency mainly because of its higher utilization and the leverage the company enjoyed. TCS is currently moving in an uptrend channel and has given a breakout of a rounding bottom formation. The stock is trading above its 200DMA, indicating the positive momentum is intact. Ashis says the short-term moving averages are trading above their long-term average, and after recent correction, the stock showed resilience and bounced back from its support. He recommends a buy on TCS with a target of Rs 3670 with a Stop-Loss of Rs 3070 for a medium-term perspective.

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View on Infosys share price: Buy Infosys with the Target of 1670 and maintain a Stop-Loss of 1410

Ashis foresees a flat to negative sequential profit growth. On a 2% - 4% (QoQ) increase in revenue, Growth in dollar revenues and constant currency (CC) terms is expected to be in the 3% - 5% range sequentially. The stock is trading close to its support zone around Rs 1404 – Rs 1420 after the recent breakout it has posted early of April 2021. He said that Infosys has broken its 52 Week high recently. The stock has picked up momentum since then, momentum indicators like MACD and RSI, indicating that the momentum in the stock is likely to continue. Ashish recommended a buy on Infosys with the Target of 1670. Investors are advised to maintain a Stop-Loss of 1410.

View on Wipro share price: Buy Wipro with price target of Rs 485 - Rs 525 and Stop-Loss of Rs 390

Ashis expects Wipro to continue to maintain higher growth momentum driven by strong deal book and execution. He expects operating margin to report above the consensus. Technically a bullish flag pattern is appearing in its daily chart around Rs 425 level. Wipro has been trading in an upward trending channel. It has posted a fresh breakout in January 2021, and since then, it has been trading above it, which indicates a positive outlook on the stock. Ahish recommends a buy on Wipro in the range of Rs 410 – Rs 425 maintaining the Target of Rs 485 and then Rs 525 with a Stop-Loss of Rs 390 for a short-term period.