Nifty IT Index

Technical analyst Ravi Nathani expects the NSE benchmark index to consolidate in 17,150 - 17,850 range

Analysts say the stock price could turn volatile in the near-term as the development comes amid a challenging macro-environment including fears of a potential recession in the US

With an view to capitalize on a potential technical bounce, the technical analyst advises traders to adopt a buying strategy near the support price.

The technical analyst also expects a pullback in the Nifty Pharma index.

Thus far in calendar year 2023, the Nifty IT index has outperformed the market by surging 10 per cent, as compared to 0.55 per cent decline in the Nifty 50

According to the technical analyst, the Nifty Realty, Pharma and Media index and its constituents can be accumulated once the corrective move is over.

Since January 6, the IT index rallied 9 per cent, as compared to 1.6 per cent rise in the Nifty50

As per the technical analyst, the best trading strategy for traders would be to buy Nifty IT either at the current market price or at dips, with a target of 31,500

According to the technical analyst, the near-term trading range on the Nifty is 18,149 - 17,760, close above or below would add trigger in the direction.

In Friday's trade, the stock gained marginally to close at Rs 1,077 per share, as against 0.5 per cent rise in the S&P BSE Sensex

According to the technical analyst, a big move on the Nifty is likely once the trading range is dismissed.

On the bourses, Wipro underperformed peers as shares dropped 0.5 per cent, while TCS, HCL Technologies, and Infosys rose up to 11 per cent in Q3FY23

HCL Tech Q3 preview: As per five brokerage estimates, analysts peg EBIT margins to see an uptick in the range of 53-60 basis points (bps) QoQ to 18.5 per cent in Q3FY23

According to the technical analyst, the if the NSE Nifty 50 benchmark surpasses the resistance a rally to 18,265 seems likely.

According to the technical analyst, the IT index is expected to consolidate between 30,600 - 26,300 range.

Recently, HCL Technologies said that its FY23 revenue could be at the lower end of the guidance; Credit Suisse warned valuation-led correction in these stocks amid US macro headwinds.

Investors though should be selective; analysts more positive on Infosys and Persistent Systems

The US market ended higher overnight, led by gains in technology stocks, after US Federal Reserve chairman indicated that the central bank may slow pace of rate hikes. Nasdaq Composite jumped 4.4%

Some of the other 'digital / new-age' companies debuted at a steep valuation compared to the traditional technology firms. The rally fizzled out as they failed to make a decent profit

The stock underperformed both the Nifty and the Nifty IT index, which fell 1.5% and 2%, respectively