IT stocks are performing well. Shares of TCS, Infosys, HCL Tecnologies and Wipro have reached 52-week highs. Shares of Tata Consultancy Services (TCS) have reached a new high of Rs 3594.60. Similarly, the price of HCL (HCL Technologies) shares has reached Rs 1158.90. On the other hand, the shares of Wipro reached a high of 52 weeks and reached Rs 639. Analysts say corrections and digitization in mid- and small-cap stocks, coupled with steady revenue and profit growth, have led to a strong rally in IT companies. In such a situation, the question arises whether profit booking should be taken by taking advantage of this rally or should it remain in it.
What is the opinion of experts on profit booking
Pavitra Shetty, co-founder and trainer of Tips2Trades, says that technically investors should start booking profits in these stocks as there has been a lot of buying in these stocks. According to Shetty, the level of 3350 is correct for re-entry in TCS, whereas. The level of 1600 in Infosys and 1040 in HCL is suitable for re-entry. Ashish Biswas, Head of Technical Research, CapitalVia Global Research, says that IT companies have performed well due to positive momentum, strong revenue growth and strong order booking and stable margins. The question is, will these companies continue to perform well? Will this increase the business of IT companies and make them more profitable? Obviously, if profits increase further, the shares will strengthen further. In such a situation, will the prop booking be fine for the time being?
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There will be more strength in the performance of IT companies
Vishwas says that the second wave of Corona did not affect the business of IT companies much. He believes that right now there will be more growth in the eye sector and the position of TCS, Infosys, Wipro and HCL will remain strong. These companies have significantly strengthened their order book as the decline in the revenue of European and American companies has sent their IT work to IT companies in developing countries like India. With this, Indian companies have got a good opportunity to strengthen their customer base and increase revenue. Vishwas says that this trend will continue even further as the work of external companies is now being done at a lower cost due to these companies. This situation will continue to strengthen these companies in the past as well.
(Article : Surabhi Jain)
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