Here's how you can trade TCS, Infosys, Wipro, HCL Tech ahead of Q4 results

When the indices showed correction recently, stocks like Wipro Ltd and Tata Consultancy Services traded with positive bias. Wipro above Rs 270 and Infy above 2100 are seeing breakout levels.

TCS and Infosys kick-start the March 2018 quarter earnings season for information technology (IT) firms this Friday. Stocks of IT companies have been trading firm ahead of the numbers, with Infosys leading the way. It's shares hit a new high of Rs 774, up 1 per cent, on the BSE in intra-day trade on Tuesday. The stock has surpassed its previous high of Rs 771 touched on February 8, 2019, in intra-day deals

Here are the key levels and trends you need to watch out for in leading IT stocks.

Nifty IT: The index is clinging on to its 200-days moving average (DMA) from mid-2017. Though it did breach the level intermittently, a confirm breakdown has not been seen in the daily chart. The weekly chart highlights a higher top, a higher low pattern with the index scaling newer highs. Going ahead, 16,200 becomes a significant level to watch out for, as it indicates a breakout level. On the other side, 14,980 its 200 DMA becomes the short-term support. Any corrective phase towards 15,800 – 15,600 levels may see buying coming back with a reversal. With a failed setup of descending triangle, any upside above the high - mostly above 16,200 levels - would mean a fresh trend driving index towards 16,700 and 16,850 levels.

Wipro Ltd (Wipro): The stock witnessed a gap down closing, resulting in negative sentiment. Thereafter, the has been consolidating in the range of Rs 265 – RS 255. Closing chart patterns reveals formation of 'Inverse Head and Shoulder' pattern with a breakout above Rs 265 – Rs 267 range. The its 50-DMA as per daily chart is at Rs 270. A major breakout above this level will see a rally towards Rs 277 and Rs 279, which is also the next hurdle for a further upside. The support comes in at Rs 255, which witnessed a buying strength earlier as well.

Tata Consultancy Services (TCS): The stock has honored the 200 DMA as per daily chart, which is at Rs 1,950 levels. Any correction that took the counter closer to these levels saw tremendous buying in stock. The chart pattern unveils an ascending triangle pattern with a breakout above Rs 2,100. The trend is surely supported by 100 DMA and 50 DMA, which are located at Rs 1,966 and Rs 2,014 levels. Although, the volumes seem unfavorable as it trades below average, there are chances that investors may hop on to ride the momentum. Stock may see Rs 2,240 and Rs 2,290 in the coming sessions.

Infosys Ltd (Infy): The weekly chart shows “Higher Top, Higher bottom” formation indicating more upside ahead towards Rs 840 levels. The stock may sustain 'forming channel pattern' on a closing basis, which may further strengthen the trend. The strong support falls at Rs 690, the gap up area as per the weekly chart, the immediate support comes at Rs 735, the area showing buying momentum as per daily chart. The MACD (moving average convergence and divergence) is trading above zero line in positive crossover successfully, a sign of a favorable trend.

Business Standard

SBI, Bank of Baroda, PNB: Here's how you can make money in PSU bank stocks

SBI has a strong relevance of 200-weekly moving average (WMA), as it has never been decisively broken in the last one year.

Business Standard : The benchmark indices witnessed a sharp rally, rising over 3 per cent in the last week. The S&P BSE Sensex rose 1353 points, or 3.65 per cent, to close at 38,024, hile the Nifty50 rose 391 points, or 3.54 per cent, to end at 11,246.

The overall trend was spearheaded by Nifty Bank, which soared 1620 points, or 5.80 per cent. The index witnessed strong buying on every new lifetime high levels. Along with private banks, investors showed keen interest PSU banks started showing the keen interest of investors with a jump in volumes and a change in trend.

NIFTY PSU BANK (NIFTYPSUBA): The index needs to strongly hold above 2950 levels to maintain the positive sentiment. Any breach on the same may trigger a sell-off. A bigger move is expected only above 3,200. The recent rally from Rs 2700 to Rs 3000 levels has been a straight rise without any confirmed breakout. The the last six months, the Nifty PSU Bank index has been hovering around its 200-days moving average (DMA) as per daily chart.

STATE BANK OF INDIA (SBI): The stock has a strong relevance of 200-weekly moving average (WMA), as it has never been decisively broken in the last one year. The formation resembles a symmetrical triangle with immediate trendline resistance at Rs 310 level. The 200 WMA is placed at Rs 260, which acts as a strong support from a medium-term perspective. The weekly MACD has just risen above zero line, indicating a possible upside. A firm rally above Rs 310 will open doors for Rs 340 and Rs 360 levels.

BANK OF BARODA (BANKBARODA): The bigger picture for the stock reveals negative sentiment on the chart. The falling channel pattern indicates selling pressure in the range of Rs 120 – Rs 125, its upper falling trend line. The 200-days moving average (DMA) coincides around the same range, placed at Rs 119.30 level. However, it has a support around Rs 112, a level where 100DMA and 50DMA in a process to make positive crossover. If it happens, the stock may cross its pressure range and head towards Rs 140 and Rs 150 level.

PUNJAB NATIONAL BANK (PNB): The current rally towards Rs 86 level is due to the strong buying seen around Rs 68, which has become a support for a-near term trading, technical chart suggests. The golden crossover of 50DMA and 200DMA has further strengthened the upward move. A possible crossover of 100DMA with 200DMA may even lead to a stronger rally in the near future. The immediate support comes in the range of Rs 75 – Rs 78 and the trend recommends a move towards Rs 94 and Rs 105 level.