Trump and Slow Growth Takes IT Index at 2.5 years low Nifty IT is the second largest index after Nifty PSU Bank Index. The index is trading at the 2.5 years low; however, it has rebounded from its recent low of 9295 made on 15th November 2016. Currently, the Nifty IT Index is currently trading at 9711, up by 4.47% from its recent low. In past one month, Nifty IT has declined 7.53% while Nifty slipped by 7.76%. If the Index goes above 9724, which is its previous week high, next target for the Index will be 10045, its second week high. Thus, if the index gives a breakout of its weekly high of 9724 and sustains above it, then we might see a short term rally in the Index. The Index is also benefitted by the declining value of Rupee which has hit the all time low of 68.85 against US Dollar. The $150-billion Indian IT industry has been already facing the headwind of slowing growth. Most companies have reduced their guidance for the upcoming quarter. It has sunk further into uncertainty as the Republican candidate Donald Trump has been elected as the new president of the US, the country which accounts for around 60% of Indiaâ€™s software exports. During his campaign, Trump had repeatedly spoken against IT outsourcing and immigration. He even mentioned Indian companies such as Tata Consultancy Services (TCS) and HCL Technologies. Hence, IT Index might witness corrections or even decline in the long run. Trump is supposed to began his reign from 20th January and the scenario for the Index will get a clear picture then. Gainers today: Symbol CYBERTECH 8KMILES KELLTONTEC ORACLE DATAMATICS
10.5 6 5.6 3.01 2.9 2.7 2.1 1.89 1.82 1.14 1.14
634.9 116.5 2963.65 76
MINDTREE INFOSYS HCL TECH WIPRO
462.05 937 772.15 454
Today, Cybertech has been the top gainer in the IT sector after Cybertech share price surged 10.5% in the trade intraday. 8K Miles share price followed standing second by gaining 6%. Kellton Tech share price gained 5.6%. Oracle, Datamatics, Take Solutions, Trygin, Mindtree Infosys, HCL Tech and Wipro gained less than 5% today. Except Trigyn, which is the Multibagger recommendation by Dynamic Levels, all the other stocks are the top 500 performers as identified by them.
Gainers since 14th November: Symbol MINDTREE CYIENT KELLTONTEC
WIPRO INFOSYS HCL TECH TATA ELXSI
% CHG 8.98 6.53 6.38 2.71 1.88 0.97 0.46
Since 14th November, Mindtree share price has gained the most 8.98%, Cyient share price has gained 6.53% while Kellton Tech gained 6.38%. Wipro, Infosys, HCL Tech and Tata Elxsi share price has gained less than 5% since the previous low of the Index. All the above stocks are top 500 recommendations by Dynamic Levels.
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Article Written by Tanaya Nath