Big movers on D-Street: What should investors do with Wipro, Infosys and LTIMindtree?

Falling for the third straight day, benchmark Sensex lost nearly 495 points on Thursday to close at a nearly two-month low due to selling amid foreign fund outflows.

Stocks that were in focus include names like Wipro, which fell 0.65%, Infosys, which jumped 2.9%, and LTIMindtree, whose shares rose 0.8% on Thursday.

Here's what Kushal Gandhi, Technical Analyst, StoxBox, recommends investors should do with these stocks when the market resumes trading today.

Wipro

The share price of Wipro has been exhibiting a potential cup and handle pattern. However, the area around 557 is currently acting as an immediate supply zone, hindering any upward movement beyond the previous gap-down region.

The elongated handle indicates a lateral trend with no apparent momentum to break through the resistance. Therefore, we recommend refraining from purchasing Wipro at this time and suggest considering an investment only after there is clear confirmation of a decisive reclaim of the supply zone.

Infosys

The price action of Infosys exhibits the characteristics of a true market leader, demonstrating notable outperformance relative to the Nifty50. After a remarkable surge of 45% from its lows in June 2024, the share price is currently consolidating near its all-time high.

This could signal potential accumulation that may strengthen the uptrend. Additionally, the stock has shown reduced volatility over the past 50 trading sessions, accompanied by positive signals from technical indicators such as the RSI and MACD, which is encouraging.

In its recent quarterly earnings announcement, the company reported growth across all metrics, although it did not meet analysts' expectations. On the price front, a decisive close above the 1990 level would confirm a bullish breakout from its sideways trending channel, providing a clearer directional bias. Therefore, we recommend buying the stock upon confirmation of the breakout, with a target price of 2143, while maintaining a stop loss at 1881 to optimize the risk-to-reward ratio.

LTIMindtree

The price action of LTIM is currently exhibiting a potential multi-month rounding bottom pattern, indicating possible signs of a trend reversal.

The stock has displayed reduced volatility in comparison to the last 50 trading sessions, which is a positive development as it diminishes the likelihood of erratic market movements. Additionally, the Relative Strength Index (RSI) across daily and higher time frames is notably trading well above their respective medians, suggesting significant momentum in the price movement.

Furthermore, the stock's relative strength indicates that the price action is surpassing that of the Nifty in terms of relative performance, which is a favourable indication. We recommend buying LTIM for the target price of 6925 and maintain a stop loss at 6415.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)