On account of US Dollar (USD) scaling high against major global currencies and fear of third wave of Covid-19 looming around, IT stocks are expected to move upside in both short-term and mid-term time-horizon. Hence, stock market experts are advising investors to look at quality IT company stocks whose fundamentals are strong and they have global presence. They recommended Infosys, TCS, Tech Mahindra and HCL Tech shares to buy if someone is in mood to buy IT stock today.
On why one should buy IT stocks today Asutosh Mishra, Head of Research – Institutional Equity at Ashika Stock Broking said, “IT sector is witnessing robust demand in order inflow as pandemic accelerated the cloud and digitization adoption across the organizations. Companies across the world are moving their system from an enterprise model to cloud along with digitization to facilitate the hybrid work culture”.
Recommending IT shares to buy today Ravi Singhal, Vice Chairman at GCL Securities said, “US Dollar appreciation in the global currency market is going to help Indian IT companies to get more volume with the same clientele. Market is not expecting any trend reversal in this US Dollar rally and hence, expecting better quarterly result for these IT companies next month, there can be bulk buying in the IT stocks leading to sharp rise in the IT sector stocks.” Singhal advised investors to look at stocks like Infosys, TCS, Tech Mahindra and HCL Tech if they are in mood to take any positional call.
Here is the outlook for above mentioned IT stocks:
1] Infosys: Speaking on Infosys share price target Ravi Singhal of GCL securities said, “One can buy Infosys shares at ₹1455 to ₹1477 for the targets of ₹1600, ₹1700 and ₹1800 in next two months time-frame.” However, Singhal advised investors to maintain stop loss at ₹1414 while taking position in the IT major.
2] TCS: Asked about the TCS share price target Ravi Singhal said, “Investors with time-horizon upto two months can buy TCS shares in the range of ₹3255 to ₹3277 for the targets RS 3400, ₹3500 and ₹3600”.
3] Tech Mahindra: Asked about Tech Mahindra share price target Sandeep Matta, Founder at TRADEIT Investment Advisor said, “We advise to buy TechM for the target of ₹1150 to ₹1185 in 6 months’ time frame with a positional stop loss of ₹950 and investors are advised to accumulate at lower levels”.
4] HCL Tech: On HCL Tech share price target Sandeep Matta of TRADEIT Investment Advisors said, “Technically the IT stock is expected to remain in a bullish trend on account of strong US Dollar as over 60 percent of its revenue is received from the US. One can buy HCL Tech shares at the current market price and further accumulated on dips for the target of ₹1060 to ₹1130 in short term with the stop loss of ₹880”.