GOLDEN RULES FOR TRADING

IT Stocks Outlook for the week – 01 to 05.02.2016 Seen positive; Tech Mahindra earnings in focus

IT Stocks Outlook for the week – 01 to 05.02.2016
Seen positive; Tech Mahindra earnings in focus

Stocks of information technology companies are seen trading with a positive bias next
week. Focus will be on Tech Mahindra as it will detail its Oct-Dec results on Monday,
the last among large-cap companies to do so. According to an average of 22 analysts'
estimates, the information technology giant is likely to report a 3% sequential decline
in consolidated net profit to 7.6 bln rupees, and a 2% on-quarter rise in consolidated
net sales to 67.4 bln rupees in the quarter ended December.

Tech Mahindra is the only stock which is looking weak in the next few sessions.
Market participants are expected to invest cautiously in the sector, and are likely to
prefer large-cap companies. Infosys is seen to be the most preferred in the sector
among large-caps. Stocks of Tata Consultancy Services and Wipro, which have been
in consolidation phase over the last few sessions. Among mid-cap companies,
Hexaware Technologies and Mindtree are likely to find preference