Infosys a rangebound stock at Rs 1700-2000

CNBC-TV18’s Managing Editor, Udayan Mukherjee - We are not expecting much from the Infosys’ Q1 results as such. I think Q1 results could be quite average and that the market knows. What we do not need is any kind of shocks on the forex front because that I don’t think is priced in completely.

People have some idea that maybe there could be forex losses depending on the hedges. So if there are any variations there because that is not very easy to map completely, then I think the market might get thrown a little bit because if the reported numbers are way off expectations. But I still think that the more important thing would be what Infosys does with its full-year guidance.
 
There is an expectation that given what the rupee has done. They will be able to up their guidance quite significantly for the year and if they do that it might take the sting out of even average Q1 numbers. So the more important factor would still be the guidance for the full-year. If the market at the end of tomorrow’s trade gets the feeling that Rs 100 per share is in the bag - I mean Infosys may not take its guidance upto Rs 100 exactly - but even if it takes a major step in that direction, the market will start second guessing that Rs 100 will be delivered if not guided. If that comfort is there I think Infosys probably has a good chance of making it close to that Rs 2,000 mark. So that’s about 20-times expected earnings for the current year.
 
So maybe for the moment Infosys is a rangebound stock between Rs 1,700-2,000. The guidance perhaps is more important than the Q1 numbers tomorrow but if Infosys says close to Rs 100 tomorrow, Rs 97-98 even then I think that the nerves will settle and IT might give you a little bit of a pop-up which helps the market out a little bit tomorrow.