ET Now: Give us your insight on how you view the IT space as this space registered its biggest weekly gain in the last 10 weeks, being the biggest performing sector, outperforming its peers. And when you take a look at quarter one the earnings have also been more or less positive. So, there have been good numbers too. Do you think it’s time for IT to make a comeback? Do you believe he has started to make a comeback? And does that feel like a comfort zone for you now? And also, if you were to play this field, how would you play it? Do you stick to largecap names or do you see more value emerging from midcap IT?
Rajesh Palvia: Hence, very strong rally in Nifty IT, up about 4.5% for this week. And the way the Nifty IT index has moved up, there is a high probability that again, yes, we may see a new all-time high trajectory for the Nifty IT index continuing this upward move. The rally is mostly driven by largecap IT as well as midcap IT. Participation came from both departments.
Again, global volatility has also cooled down and global markets are also performing well in the last two days. So, we believe that yes, IT can be a sector where one can focus at this time and possibly we can see a new all-time high trajectory for Nifty IT. And from the largecap IT, I think some of the stocks where we think we can see more upside in the near term are Infosys and TCS, these two stocks are looking promising based on the technical framework. And we believe that Infosys can continue further upside and we can see 1900 to 1930 as a possible target for Infosys.
And another stock from the largecap IT space, is TCS. Again, the way the stock has moved in the last two trading sessions, there is a high probability that TCS may also register its new all-time high trajectory in the coming days and possible targets towards 4550, 4600, we can see in short. Time period Therefore, TCS can be seen from largecap IT. Even from midcap IT, I think the focus should be on Coforge as well as Emphasis. Both these stocks are looking very promising. As both stocks have managed to break out of the consolidation range, we believe in midcap IT, these two stocks can be seen, Koforge for an upside target of 6250 and Emphasis we can see a target towards 3100. So, these four stocks can trade a bit long for a short period of time.
ET Now: What stock picks do you have for our viewers next week? Tell us what you chose.
Rajesh Palvia: The first stock is in the automobile space owned by Tata Motors. There is short covering in derivative data today. As the stock managed to close the bearish gap on the daily chart, we believe there is potential for further upside. We can look at 1140 to 1150 as a possible target for Tata Motors. So, one can buy and accumulate this stock with a stop loss of 1068.
Another stock is ITC. The stock is poised to give a major breakout of the long consolidation range. The stock is now negotiating with its multiple supply zones. As the stock has shown a long period on derivative data, we believe there is potential for further upside towards 520 to 525. So, ITC buys with a stop loss of 494.
And the third stock is ICICI General Insurance. Again, the stock managed to regain its all-time high. The stock managed to breakout from its previous swing high after a brief corrective move towards the 20-day moving average. As the stock has seen a long rally, we believe that there could be a continuation of the uptrend here, a possible target we can look at is 2115 with a stop loss of 2015 that could initiate a long run.
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