The markets have given thumbs down to the first quarter results of Infosys. How should you play the frontline and the mid-cap information technology stocks and the overall markets now? Check out what Ravi Nathani, technical analyst, Nsetoday.co, has to say.
Smartinvestor : Hi, this is Puneet Wadhwa and we have Ravi Nathani, technical analyst, Nsetoday.com back with us today for a special chat session on the road ahead for the IT stocks.
Smartinvestor : Good Morning Ravi and welcome to the Talk Show.
Ravi Nathani : Hi Good Morning
Smartinvestor : Infosys has seen a sharp cut today after reporting lower-than-expected Q1FY13 results. How does the stock look on the technical parameters? Where are its near-term support levels now?
Ravi Nathani : Infy on charts has 2 strong supports (2198) & (2161) whereas trade & close below 2161 would attract panic selling. Until a bullish pattern of higher tops & higher bottom is not patterned; best trading strategy would be sell on rise.....
Smartinvestor : How do you see the CNX IT panning out in the days ahead? What are its key support and resistance levels?
Ravi Nathani : CNX IT index if close below 5650 would attract panic selling whereas next support expected would be around 5280. Best trading startegy would be sell only if it trades below 5650 as currently it is trading very close to its support.....
Smartinvestor : TCS will announce its June quarter results later in the day today. How should one play this stock given the current market conditions and the result expectations?
Ravi Nathani : Currently TCS is trading in range 1208 - 1288. Trade above / below would add trigger in the direction.
Smartinvestor : Wipro hit a seven-month low on Wednesday and has shed another 4% today. How does the counter stack up on the technical parameters?
Ravi Nathani : Trend on charts is bearish, whereas support is expected at 320, best trading strategy would be sell on rise as stock is expected to witness selling pressure on charts.....
Smartinvestor : What is your strategy regarding the mid-cap IT pack now? Are there any stocks that you would like to recommend from this space for a long / short position?
Ravi Nathani : Finantech is a sell on rise whereas target / support expected is 730 & 720. Mphasis is a sell below 375 whereas target expected is 357 & TECHM is a sell whereas support / target expected is 685 - all these targets are expected is get achieved in short term......
Smartinvestor : CMC has rallied in today's trade on reporting 68% year-on-year(y-o-y) rise in its consolidated net profit for Q1FY13. Do you track this stock?
Ravi Nathani : Yes I do, Stock has given a positive breakout on charts whereas target / resistance is expected at 1050..
Smartinvestor : So, what is your overall outlook for the market? What are the key levels for the Nifty you are keeping a tab on?
Ravi Nathani : Strong support for Nifty is expected at 5190; whereas trade below this level would open doors for 5125. Even if Nifty trades around 5150 I would still recommend to buy for medium term because Index on charts is bullish....
Smartinvestor : Thanks, Ravi for your time and advice. Please give us your disclosures (if any)
Ravi Nathani : I don't have investment exposure in any of the stocks discussed today....
