Is the downtrend of IT Stocks over?

Friends and co investors

I am feeling with my analysis and the recent updates that it might so happen that the IT stocks have seen its bottom and are back in the top stocks of the Indian growth story. Today as the market uproared we might have noticed that the small caps were in the negative trend and many of the IT stocks were again at the major rise.

Friends lets put in some replies and see what other fellow analysts and investors feel about this??

Yatish

Wondering why no replies on this one yet

hi

Yes this is a typical scenario or I can say bull movement. You can see that all blue chip scrips find its momentum. After reaching some level which market find its peak, then people start picking up midcap. But small cap will be last one will see the momentum and the first one to see the bottom

I think bull run has started Monday market will be up by again 300 points

market will move in the range of 16000 - 19000

Happy fishing

Satheesh

First came the news that a leading industry player such as TCS had cut the variable pay of its employees . Now , IBM has reportedly fired 700 freshers .

Does this mean that the IT/ITes industries will now become very particular about whom they hire and the skill set of the employee?

Is the time when anybody and everybody in these sectors got a hefty pay packet gone for good? Has the Indian IT industry finally lost its low cost USP and will it now have to compete with the biggies of the world on skills and products? Is it a field youngsters should opt for?

Write in

No. I think that the downtrend of IT stock will continue. The price level
of almost all it companies are inflated even now.The US recession may
help the investers to Buy IT stocks at a further low range.

I will agree with him to some extent.
Few points of mine
1. All IT stocks hit the 52wk low..so technly there will be some upside of 10% to 30%..but it will good to do swing trading
2.The US slow down will definetly give sleepless nights to all companies dependent on US orders..so look for diversified firms or rather firms with orders from different nations
3. If US slides to recession then the global markets will fall no matter what..
why?a. nobody to match the demand of US eco or take over their demand..even India and China combined will not help cover the demand slide b. currency devaluation...imagine 1 Re =10$..in India ..now imagine what will happen to the world!!!..c.as a chain reaction all countries exporting to US will face extreme hardship..and die!!..
not a very cheering note..but that is what will happen..
But on a positive note.. or should I say optimistic note..if I can think of these things ..then Einstien's of economy in the US and world over would have thought of more than what I have said and taken measures...

BSE IT INDEX....last close :4098
technically ,only a close abv 4275 will alter the bearish oulook on a med term basis.