IT stocks likely to be in focus today

1. Bull market or bear market today?

Considering the current trend, we can expect the market to be trading on a negative note today. However, a short covering in the second half of the day cannot be ruled out. The next support for Nifty will be at 10590 levels and a fall in the global markets may further test this downside level.

2. Stocks likely to be in the limelight today?

A sharp fall of 42 paise in rupee against the US dollar favoured all the information technology stocks. We saw a decent upside in most IT stocks with TCS leading the rally by gaining more than 1.3%. In relation to the currency, we can expect IT stocks to be in focus today.

3. Sectors likely to impact the market today?

Nifty Bank shed close to 2% today, dragged by YES Bank that plunged 14%. The scrip has been on a losing spree for a while now. The other losers include Bank of Baroda, PNB, SBI, ICICI Bank and some others as well. We can expect the banking sector to be in the limelight for today as well.

4. Your mid-term view?

The market is getting impatient with regards to the prospects of a stimulus package from the government and the comments made by some government officials have dimmed hopes. One can continue to expect some weakness in the near term, but expect the economy to stabilise in the second quarter and recover in the second half of the year.

Siddharth Sedani, vice-president - equity advisory, Anand Rathi Shares and Stock Brokers