IT (Tech) Stocks - What's causing the fall?

Is this better than netfit ?

For long term both will give almost same return. I went for icici becuse there was better liquidity. Also I already have it in my portfolio. So I just wanted to add to my existing holdings.

Right near the bottom. + 2100 points.

Most of these reports come near the bottom (temporary or medium term) that needs to be seen. But, wonder what these guys smoke to give a sell call after 35% brutal fall.

@Nidal @Jason_Castelino @neha1101 great picks n your views were on point

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27423 support and bounce @Prakashsingh :smiley:

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The main reason why I am not a fan of techincal analysis. All of them were saying sell. I keep accumulating IT because I knew it will bounce back some day. I wont say this is the bottom but I really went overweight. And now when technical guys scream buy, I book profit and keep the weight back to what it was before.
Particularly 3 stocks in addition to ETFs that I have been accumulating.

  1. HCL . Kept adding till 960. And today I sold 1060 call. If it exceeds that price I am happy with 100 points I made. If it falls I get 20 points from premium.
  2. Heromoto. Adding from last 5 months. Last added at 2100. Today sold 3100 call for 11.5 points.
  3. Hdfc bank. Last added at 1290. Didnt book this one.

I also kept selling OTM calls on these.

I understand am doing totally against the technicals but then this works for me better.

Disclaimer: None of the stocks mentioned above is any recommendation. (Buy or sell). Please do your own research.

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IT stocks can be on radar as Accenture is going to announce results today…

It kind of gives an expectation n sets the tone as to what we can expect from Indian IT sectors earnings next month

I think it is a good time to add IT stocks like Infosys and Wipro to your portfolio. They will fetch good returns in the long term. Currently the entire stock market is crashing due to inflation and other international issues. I am sure that IT stocks will also recover once this phase is over.

Still overvalued. Will fall more

These are great times and comes very rarely. Never seen the big 4 IT companies at these market price. TCS and HCL both have adequate order book. Great time to buy in smaller quantities.

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Prices are still high.

5 year median PE vs Current PE
INFY - 21.2 vs 27.3
TCS - 26.2 vs 28.3
HCL - 15.4 vs 17.7

This is for large caps. Mid cap IT is even more expensive.

If you are a long tern investor don’t try to time the market. Buy in a scattered way. Otherwise later you will repent on missing out.

One thing about IT which very few sectors have…Free cash flow and most of them being debtfree

Just for that very reason…they deserve some high premium me thinks

I like to buy at good valuation. I’m fine with missing the opportunity, if it doesn’t come to my price.

Point noted. What I am worried is my average cost and how good the business on a qarterly basis is doing. Both TCS and HCL have done well with good order book and my strategy is to accumulate as an Investor. The surplus cash is given back to the shareholders regularly which also meets my strategic objective of investing.

These companies are FII favorites and obviously when they take money out, there will be a dip in the price of the stock. At the same time when things improve, the same FII will come back to these stocks only.

Disclaimer: These are my personal views and need not be correct.

I would say you can still keep adding stocks like TCS to your portfolio. It fell the least in comparison to others and has strong fundamentals. The IT sector is down at the moment but it will surely recover.

Your patience was tested. And now it’s rewarding for being brave. :heart_eyes:

looks like market globally priced in whats going to come in next coming months. Therefore, Nasdaq and IT sectors here have started bouncing back.

Bad news is good news for growth stocks in rising interest rate scenario

There are several reasons for the fall of IT stocks:

  1. Supply-side pressures
  2. Fall in demand because of the factors of Western nations’ influence. They include factors like interest rates (causing a decline in profits), revenue or sales and growth, high attrition, and steep valuations of international currencies (especially the US Dollar and the Euro).
  3. Selling by foreign institutional investors (FIIs) is also a factor.