After strong closing on Friday weekend trade session at both Indian and US indices, bulls are expected to come strongly when the stock market opens on Monday. So, market experts have recommended retail investors to look at IT stocks as these shares are expected to remain the bull’s favorite for the next one to two years. They said that if someone is looking forward to adding some stocks to its portfolio today, then they can look at TCS, Wipro, and Tech Mahindra shares and maximize their gains in long term.
Speaking on why one should buy IT stocks Tirthankar Das, Head of Technical Research at Ashika Stock Broking said, “Nifty IT index is moving in a strong uptrend making the higher top and higher bottom formation after breaching its earlier high and trading above breakout level of the rising channel on the monthly chart. It is now around its all-time high with the RSI oscillator also showing strength on both weekly and monthly scales, which certainly bodes well for the bulls. IT space continues to outperform with most of the stocks placed at their 52 weeks high with weekly 14 periods RSI in an uptrend and is seen rebounding taking support from its average thus validates positive bias”.
Highlighting the fundamentals supporting IT stocks in upcoming trade sessions Jitesh Ranawat Head Institutional Sales at Marwadi Shares and Finance said, “IT sector has been the bellwether of the Indian stock markets and has performed really well in the past one year on the back of digitization. This has resulted in strong deal momentum and large deal bookings for large IT players. Positive commentary by the players in terms of margin and CC (constant currency) growth led to PE expansion of all the companies and right now most of them are trading at valuations that are above the 10-year historical averages showcasing higher growth expectations. Also since the sector is cash-rich we would recommend looking to buy them on dips as the outlook for the next 2 years looks good on the back of stronger growth supported by large deal wins”.
Asked about the shares to buy today when the stock market opens today experts recommended Wipro, TCS, and Tech Mahindra stocks.
Wipro share price outlook
Speaking on the Wipro share price target Tirthankar Das of Ashika Stock Broking said, “Wipro shares are taking support at 23.6 percent retracement of recent up move and previous breakout area signaling further upward momentum in coming sessions. One can buy the stocks in the range of ₹520 to ₹525 for the target of ₹585 maintaining stop loss at ₹487”.
However, Ravi Singhal, Vice Chairman at GCL Securities said that the stock is a portfolio stock and one can buy the counter for long-term eyeing ₹900 targets in the next two years.
TCS share price prediction
On why one should buy TCS shares today Tirthankar Das said, “In structural uptrend forming a higher peak and higher trough in all time frame. It has recently generated a breakout above six months range facing resistance for multiple numbers of time”.
Predicting an upside move in the IT counter in the short-term Tirthankar Das said that one can buy TCS shares in the range of ₹3250 to rs 3270 for the target of ₹3675 maintaining stop loss at ₹3120.
On TCS share price target in the long-term Ravi Singhal of GCL Securities said, “TCS is a portfolio stock and one should buy the counter for long-term time-horizon as the counter may go up to ₹4800 in next two years”.
Speaking on Tech Mahindra’s share price target and the reason fueling this particular share in upcoming trade sessions Ravi Singhal said, “This counter is going to become one of the major beneficiaries of the 5G roll-out. So, the stock is expected to remain strong from the fundamental perspective and hence in the next two years, I am expecting the counter to go up to ₹2,000 marks”.
Tech Mahindra’s share price had the close price of ₹1089.50 at NSE on Friday.