Sunday, March 1, 2009

INDIAN MARKETS Mar 2009 : IT SECTOR - BUYING OPPORTUNITIES

Protectionism is the new name of the game. What was anathema for Americans has now become the new mantra for survival. Trade protection is how America is responding to the present economic crisis. Outsourcing is going to be penalised by the new American Administration of President Obama. And the ripple effects will be felt by the Indian IT industry. What with Satyam weighing heavy around its neck as millstone, the IT Sector in India now has to contend with another stab at its revival plans. But our focus will be to spot the buying opportunities that companies in this Sector are going to present to us in near future.

Infosys
Infosys can be bought with lot of caution at around 1100 to realise some quick profits by very smart and alert traders. But for an investor there is buying opportunity only at level of 900. Short term investors can enter at around 900 for a gain of Rs 200. Long term investors can invest 50% at this level. If Infosys breaches 900, one can safely look for a buy at 600.

TCS
Below 450 short term investors can look to enter TCS at 318 . At this level they will be able to garner profit of Rs 135. Long term investors can put 75% of their investment at level of 318.

Wipro
If you are a brave hearted trader then you can buy Wipro at 180. But the caveat is that you must exit at the slightest weakness at 180. Wipro is ready for the level of 110 and it is at this level that it will present an excellent buying opportunity. Don't miss it.

HCL Tech
Hcl Tech will present itself for buying between 72 and 76. Be on the look out for that level. In an intra-day move it may also touch 60 but that will just be providential for anyone to catch it at that point.

Satyam Computers
What can be said of Satyam! It has not only taken the wind out of the entire IT sector but has also has put a question mark on the credibility of Corporate India. One can consider buying Satyam only around 10. My guess is that it is most likely to touch its historically lowest price of Rs 6.3 or there-abouts.