satyam:is it a buy now?
- Thread starter shar1
- Start date
satyam is not a buy at any level there are better options available in the market.
Fundamentals:-
Lowest priced(in P/E Terms) large IT software company hence in fundamental terms more upside left while comparing valuations of other large IT stocks.However note that it has commanded cheap valuations in the past aswell and hence this factor cannot guarantee satyam outperforming the market.
Technicals :-
Longterm support around 380 ( this level is dynamic )and can look at accumulating at those levels if needed.
resistance zone : 500 - 524
Intermediate Support zone 450 was broken a week back and it took support around 380 levels to bounce back.
Liquidity :
Satyam has high FII exposure and hence is directly related to global volatility . This can work both ways i.e. when FIIs pump in money it will be the biggest beneficiary among all IT stocks and vice-versa.
Outlook:
When the market goes up , the rupee appreciates and this will take its toll on IT stocks.
When the market goes down , every sector including IT will be hit. Hence IT stocks and in particular satyam can be avoided. However one can look at mid-cap IT stocks like rolta and omnitech which derive their revenues mostly in rupees and not in dollars or probably look at switching to performing sectors like financials , telecom and capital goods .
If you are already holding this stock wait as there might be a upmove(not a major one)on the cards but dont hold it for the long-term as indian rupee will get stronger and stronger which will mean that IT Stocks will head southwards unless they look at the dometic market more seriously.
Fundamentals:-
Lowest priced(in P/E Terms) large IT software company hence in fundamental terms more upside left while comparing valuations of other large IT stocks.However note that it has commanded cheap valuations in the past aswell and hence this factor cannot guarantee satyam outperforming the market.
Technicals :-
Longterm support around 380 ( this level is dynamic )and can look at accumulating at those levels if needed.
resistance zone : 500 - 524
Intermediate Support zone 450 was broken a week back and it took support around 380 levels to bounce back.
Liquidity :
Satyam has high FII exposure and hence is directly related to global volatility . This can work both ways i.e. when FIIs pump in money it will be the biggest beneficiary among all IT stocks and vice-versa.
Outlook:
When the market goes up , the rupee appreciates and this will take its toll on IT stocks.
When the market goes down , every sector including IT will be hit. Hence IT stocks and in particular satyam can be avoided. However one can look at mid-cap IT stocks like rolta and omnitech which derive their revenues mostly in rupees and not in dollars or probably look at switching to performing sectors like financials , telecom and capital goods .
If you are already holding this stock wait as there might be a upmove(not a major one)on the cards but dont hold it for the long-term as indian rupee will get stronger and stronger which will mean that IT Stocks will head southwards unless they look at the dometic market more seriously.
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