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IT Stocks Outlook for the week (21.05.2012-25.05.2012)
Stocks of information technology companies are seen up in the week ahead because of rupee`s depreciation against the dollar. However, the disappointing results and guidance given by tier-I companies including Infosys and Wipro that indicate gloomy demand environment will continue to weigh on these stocks.
The rupee has depreciated 1.5% this week against the dollar and touched an all-time low of 54.8950 per dollar yesterday. The local currency has been depreciating on the back of risk aversion seen globally. If the rupee continues to depreciate, it is really going to help the software companies and is in fact the sole positive factor for the sector as of now. Depreciation in the rupee against the dollar benefits the Indian software exporters as they get nearly 65% of their revenue from the US.
There are no other factors that could support prices in coming session as the top software companies have failed to cheer the market. This will limit the upside in IT stocks. CNX IT index is expected to find support at 5650 and faces resistance at 6202 in the week ahead....
Uncertain times for Indian IT industry post quarterly results. Are days of high growth over for Indian IT services?...
IT Outperformers
• Hexaware Technologies, TCS, Oracle Financial, HCL Technologies.
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Any body,Can Pls Advice me on POLARIS...As ive Short it at 140 ...Shud i Book profit..? Or wait for further correction today itself...Trded in F&O....
