In a gloomy macro-economic scenario in 2013, rupee went into a free fall and investors rushed to safe-haven IT stocks. They were market's darling until recently, given their strong fundamentals and export-led earnings. Falling rupee made software exports attractive for foreign buyers which made the outlook for IT stocks positive as compared to cyclicals, banks that tend to gain with the economy. But given that the Indian rupee (INR) has gained consistently against the greenback in 2014, can IT stocks really be counted among defensives now?
The rupee has recovered over 11% from its record low levels of 68.61-a-dollar touched in September, 2013. However, the fundamentals of top IT companies remain strong and their stocks are still counted as safe bets.
As of today, CNX IT is down 11.14% since February 28, against the benchmark Nifty's 5.85% in the same time period. Ravi Nathani, technical analyst and Founder, nsetoday.com analyses short-term trends for top three IT heavyweights:
Also, it’s March series derivative expiry day and the market is expected to be volatile as investors roll-over positions into the near-term April series. Benchmarks stock indices have however held their initial gains into noon deals now.
The 30-share BSE Sensex was last seen trading 113 points up at 22,205 levels while Nifty is up almost 40 points at 6,641 levels.
Nathani charts out his best strategies to trade indices and stocks for short-term gains. Other than IT stocks he analyzed broader markets and the opportunities that lie in stocks listed on the BSE small-cap index:
Where are the next resistance and support levels for benchmarks and what strategy to trade indices on this crucial day?
As per technical's are concerned Nifty has stiff resistance around 6660 for short term, In simple terms to understand traders must buy Nifty on dips with a target of 6660 & 6710 in coming 3-4 trading sessions.
One of our readers has posted this question. Here goes:
: I have 1 Lot of 380 Strike Tata Steel Call April Series Option @16.00. Whats the call for Tata Steel for this month series. Also I have purchased 1 lot of Bharti Airtel 310 Call Option @ 6.90. Whats your opnion on both of them.
I am expecting TATASTEEL to be bullish in next month series with a target of 390 - 395, so traders could buy the stock on dips & Bharti Airtel close above 304.25 would open doors for 313 & 328 in short term, therefore I would suggest hold on to both the stocks.
BSE small-cap index is up over 1% today. What are your top bets there at this time in point?
