Mindtree will see an upside bias once it breaks out above Rs 920 levels
Infosys, Tech Mahindra and HCL Technologies were down in the range of 5 to 6 per cent in early morning trade today.
In the past one week, shares of most IT companies have slipped amid rapid spread of coronavirus. Tata Elxsi, Mindtree, HCL Technologies, and Wipro have plunged in the range of 6-8 per cent.
For the recently-concluded September quarter, large-cap IT services firms delivered a mixed performance.
The investor should also be able to evaluate the quality of the promoter-his background, competence level, and even his hunger to make it big
The brokerage, as per reports, noted that the IT sector, as a whole, will face cyclical hiccup ahead and the current valuation of the sector is at premium to historical average.
Higher attrition, elevated sub-contracting costs and pricing pressure are likely to negate benefits from a weak domestic currency
Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor
The stock has absorbed all the selling pressure in the range of Rs 760 - Rs 770 and is ready for a fresh upside. Although it witnessed mild selling above Rs 800, the overall trends still looks bullish
Post the results, most brokerages have revised their price targets for both these stocks.
Though the Nifty IT index is currently trading above the trendline resistance of 15,010 and the 100-DMA of 14,884, only a strong close with subsequent follow-up buying can lead to a strong breakout.