IT Stocks Outlook for the week – 24 to 28.04.2017

IT Stocks Outlook for the week – 24 to 28.04.2017

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IT Stocks Outlook for the week – 24 to 28.04.2017 )

The shares of information technology companies are seen trading with a negative bias in the coming week. Tata Consultancy Services Ltd announced its earnings for the March quarter on Tuesday, reporting a 2.5% drop in consolidated net profit. The company, however, remains optimistic about the future, in sharp contrast to its peers. While Cyient reported a 16.7% sequential fall in consolidated net profit for Jan-Mar, Mindtree fared better than expected, with a 1.8% sequential rise in net profit for Jan-Mar. Geopolitical headwinds returned to the Indian information technology sector this week with Australia on Wednesday scrapping its skilled visa programme, leading to uncertainty, though industry body NASSCOM was quick to point out that the move was unlikely to hit Indian IT workers. On the same day, US President Donald Trump, in a renewed attempt to push forward his mandate of "Buy America, Hire American" themed reforms, signed an executive order calling for a tightening of the H-1B visa programme. Though the move is seen as having no immediate impact on H-1B visas, the long-term implications of Trump's intentions remain unclear. Next week, investors will track the Jan-Mar earnings of Wipro Ltd, whose shares are seen trading in the range of 470-497 rupees. In the coming week, support for TCS shares is seen at around 2,252 rupees and resistance at around 2,386 rupees, while Infosys shares are seen trading at 901-950 rupees.

Source : Cogencis Information Services Ltd.