IT Stocks Buy/Sell Call - Sep 28th '12 to Oct 27th '12

Almost every other IT stock is going through a steep correction and that is infact healthy

As part of Elliott wave every large & midcap stock has already gone through the 5 wave impulsive pattern and now it is time for a 3 or a 5 wave decline

Last Sun I had mentioned that including the index "NIFTY" and all other stocks are in over bought zone and that a decline is evident before Sep expiry and as per that we did see correction setting. Now NIFTY has less than 10% chance to move above 5720 a correction is already underway and mostly it should now take it through a 3 wave decline pattern to as low as 5400 or 5350

Please find below list of IT stocks that you can now keep buying on declines as some of the stocks are showing signs of correction getting over within next 2 to 4 trading sessions

Buy Calls 

TCS

TCS is going through a very steep correction from a high of 1439.8 to 1261.1 i.e. 178.7 points down. Infact the correction is not yet over and I expect TCS to find support between 1200 to 1220 anytime this month

Summary

Wait for correction to get over and then accumulate TCS anywhere between 1200 to 1220 and target 1320. Will provide a stop loss value once I see wave 5 decline getting over

Hexaware

Steep correction seen from 140.9 to  117.5, infact this correction is not yet over and may go through a small upmove of wave 4 and then a further decline of wave 5 which may take Hexaware anywhere between 113 to 109

Once you see Hexaware between 109 to 113 support levels then that is the time to accumulate the stock on dips and then aim for a target of 128 

Mind Tree

Mind Tree like any other IT stock is going through a correction phase and is in wave 3 decline and has still room for further correction to take place

Wait for this correction to get over and keep buying on dips between 600 to 630 and aim for a target of 730. Stop Loss will be mentioned once the wave 5 decline is completely over

Note : It is always not mandatory to mention a stop loss, and especially when you know that Elliott wave theory to the core then that tells you the signal that this correction is not yet over and have another couple of points left out. For all the buy calls in this section will send out another post once I see wave 5 decline getting over

Sell Call

Infosys

Infy went through a huge impulsive 5 wave pattern starting from 2101.25 to 2650 and now after this 26% upmove it is time for it to correct and infact in the large cap space Infy is going to have a huge correction

Wave 1 correction has just begun and and this should take the stock to as low as 2370 or even lower to 2310 and that is when downward correction will get over

Sell Infosys Oct series at current levels and target to take profit anywhere between 2370 to 2310 in next couple of weeks time