HCL Tech has strong resistance at Rs 520-522: Way2Wealth

Aditya Agarwal, Sr. Derivative Analyst, Way2Wealth is of the view that HCL Technologies has strong resistance at Rs 520-522.

Agarwal told CNBC-TV18, "We have seen lot of short positions getting built up into whole CNX-IT Futures and all the technology counters. Because of the TCS result we saw one short covering rally trigger. We saw some bounce back in all the IT counters, but overall trend is still weak and they are not breaking the resistance level. In HCL Technologies Rs 520-522 is a very strong resistance level. We are continuously seeing selling pressure on those levels and again from those levels only we have seen some selling pressure. So we are expecting that selling pressure will continue in all the IT counters. Particularly HCL Tech we have seen some fresh short positions getting built up in last two trading sessions. Se are advising to make short positions around Rs 509-510 levels in May series with a target of Rs 484 and the stop loss will be Rs 522."