Indian IT shares gained almost 1.4% Thursday after Cognizant issued a moderate revenue growth forecast raising concern the sector is heading towards slower growth. Cognizant expects 16% revenue growth in 2013 as against its projected 20% growth for the current year 2012.
In an exclusive interview with Myiris.com, Ranak Merchant, technical analyst- strategies, Sushil Financial Services, has provided views on three IT stocks on Thursday, Dec. 6, 2012 which are as under:
The stock completes almost a year of downtrend, losing close to 40% from the highs of January 2011 to the lows it tested in 2012. The stock though now trades 10% off the lows, the gains are yet insignificant as compared to the fall thus re-emphasizing the underperformance of the stock. Current patterns depict the inability of the stock to scale above its 200 day EMA of 2475. However as the stock trends lower to the support zone of near 2280, sustenance of the same would trigger a corrective short term upmove towards its 200 Day EMA, once again. Thus dips can be used to accumulate the stock.
Shares of the company declined Rs 44.15, or 1.85%, to settle at Rs 2,338.15. The total volume of shares traded was 142,032 at the BSE.
Contrary to the performance of Infosys, TCS scaled to new life highs of 1438 in the September month of 2012. However a consolidative phase unfolded thereafter that has seen the stock correct by near 12%. The correction/consolidation does not come as a surprise post such phenomenal performance from the stock. The stock however firmly guards its 200 day EMA of 1255, as lows tested on previous accounts were of 1257. The short term charts however indicate the correction/consolidation to continue a bit further and therefore the stock can be sold for a trading target of 1212.
Shares of the company declined Rs 17.4, or 1.34%, to settle at Rs 1,279.75. The total volume of shares traded was 89,120 at the BSE.
The stock has broadly been consolidating in a near 12% price band with alternate bouts of up and downmoves, thus depicting a mixed trend. The stock has managed to hold onto its 200 Day EMA for most downmoves except for a few minor intraday aberrations. Currently too the stock trends just above its average thus giving no clear signal to a positional trader. The price band of 422-376 can be observed by short term traders for buy and sell positions.
Shares of the company gained Rs 8.7, or 2.24%, to settle at Rs 397. The total volume of shares traded was 102,090 at the BSE.
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