Nifty IT index on cusp of breakout. Experts give buy tag to these 5 stocks

Nifty IT index is oscillating around 30,000 levels and Dalal Street is eagerly waiting for breakout in the index, which is expected around 30,500 levels, as per market expert. In the current market rally, where mainly large-cap index has been supporting to key benchmark indices climbing to record highs, breakout in the IT index may lead to buying interest among market bulls in mid-cap and small-cap IT stocks. 

They said that next round of rally is expected to bring cheers among retail investors as they invest mainly in mid-cap and small-cap stocks and advised positional investors to look at Coforge, Birlasoft, Tata Elxsi, Firstsource Solutions and Tech Mahindra shares.

Expecting breakout in Nifty IT index, Ravi Singhal, CEO at GCL Securities said, «Nifty IT index is hovering around 30,000 levels and we are expecting IT index to give a breakout at around 30,500 levels on closing basis. Once the breakout happens, we may expecting heavy buying interest among market bulls in mid-cap and small-cap IP stocks and the index is expected to hit 33,400 levels in short to medium term.»

Echoing with Ravi Singhal’s views, Anuj Gupta, Vice President — Research at IIFL Securities said, «In current market rally, most of the buying is being done by FIIs that has fueled key benchmark indices. However, retail investors who mainly invest in small-cap and large-cap stocks, they are still expected to get benefit of this rally and once Nifty IT index gives breakout on closing basis, one can expect strong upside movement in stocks belonging to broader markets. So, this is time for positional investors to buy or accumulate small-cap and mid-cap IT stocks and hold for short to medium term.

IT stocks to buy today

On IT stocks to buy in current markets, market experts reverberated in unison that one should buy Coforge, Tata Elxsi, Birlasoft, Firstsource Solutions or FSL and Tech Mahindra. They said that these IT stocks are expected to outperform its peers and hence one can buy these IT stocks at current market price and keep on accumulating till IT index gives breakout at the given levels.

In intraday trade session, key benchmark indices Nifty, Bank Nifty and BSE Sensex hit life-time highs. Nifty 50 index hit record high of 18,533, Sensex hit new highs of 62,447 whereas Bank Nifty climbed to a new peak of 43,339 levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.


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