www.rupeedesk.in
Stocks of major information technology companies are seen trading in a range next week, with likelihood of some profit booking in Infosys Ltd following its upswing in the last 15 trading sessions. Yesterday, stocks of most IT companies fell on correction after their rise witnessed in the last six sessions on solid performance of the overall sector. The CNX-IT index is expected to remain positive over the next five sessions. Between the large-cap companies and the mid-tier firms, hold a positive bias for the former, given the slower pace of recovery. Mid-cap out-performance to large-cap is highly contingent on the pace of economy recovery and consequently the pace of IT spending pick-up. Both remain gradual at best, in our view spending recovery in 2013 is likely to be moderate and therefore unlikely to provide material growth opportunities for mid-cap. Even though most mid-cap companies' managements have alluded to strong order pipeline, the deal win announcements have been rather scanty. For the next five sessions, CNX-IT index will see support at 6700, while it will face a strong resistance at 6900.
