Technicals: Infosys and other stocks that are making headlines

Technical view on stocks that are buzzing today

Nasscom (National Association of Software and Services Companies), a a trade association of Indian Information Technology and Business Process Outsourcing industry, in February said that IT exports from the country would grow 13-15% in FY15 but Infosys, the IT sector's bellwether guided for 7-9% growth in FY15. This has analysts disappointed.

On key takeaways from Infosys' Q4FY14 results, Ankita Somani -  IT analyst at Angel Broking says,"This quarter was expected to be soft for Infosys due to some unanticipated project ramp downs seen by the company as well as weakness in retail & CPG industry segment. Infosys reported 0.4% qoq USD revenue decline which is in-line with our expectations but the company has managed to register ~50 bp qoq expansions in its EBITDA margin and a good 4% qoq net profit growth which is a creditable. Along with these broad numbers, increasing dividend payout to 40% and offshore wage hike of 6-7% are quite comforting takeaways."

The stock is down to Rs 3,206 levels from its March high levels of Rs 3847.

Also, United Spirits surged after Diageo Plc has made an offer to acquire an additional stake in United Spirits at price of Rs 3,030. United Spirits rallied 15% to Rs 2,941 levels on the Bombay Stock Exchange.

Devangshu Datta, independent technical analyst and market expert shares his technical outlook on Infosys, United Spirits and other top stocks that made headlines recently.

What is your outlook on benchmark indices for the truncated week? Do you see market consolidating as election results fast approaching?

Short-term direction depends on inflation nos to some extent. Market is likely to maintain overall positive bias until May 16.

What is your outlook on Infosys? The stock is down to Rs 3,206 levels from its March high levels of Rs 3847

Long-term bias seems a little negative. Infy could test support at 3000-3050. On the upside, it has massive resistance between 3500-3600.

What about United Spirits; the stock rallied as much as 15% today on back of newsflow?

The open offer also puts a ceiling on the stock. Obviously the trend is positive. Stop loss at 2800 if you decide to dabble in this

Is it ok to buy Multi Commodity Exchange of India (MCX) at current levels? There is a lot of buzz around the bourse's 24% stake transfer from parent Financial Techologies to potential bidders?

 
Seems like a positive trend in MCX. It's highly volatile. Keep a stop loss at 577-580 if you are taking a position. Lot of resistance at 600-605. if it crosses that 605 mark, it could climb till 675.

What IT stocks would you suggest buying at current levels with a 6 month time-frame and two bank stocks that can be with a one month time-frame?

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