Satyam safer than Infosys: E Mathew

Technical Analyst, E Mathew is of the view that Satyam Computer Services is safer than Infosys.

Mathew told CNBC-TV18, "Though everyone is very gung-ho on IT as such, the movement especially in a stock like Infosys is almost like a vertical rise. So if this is to be a sustainable move, especially in a counter like Infosys which is incidentally viewed as the market leader as far as this sector is concerned, I think it is imperative for Infosys to correct down to about Rs1650 to Rs1680. That would be a healthy correction and possibly that would afford an opportunity also for those who are long term IT bulls and those who feel that the weakness in the rupee is providing an opportunity, that would be a very good opportunity possibly to get into a stock like Infosys."

He further added, "Satyam, I should say that the chart has been more of a gradual rise. So I would say that the danger in Satyam is less as compared to Infosys. But here again I think, the stock has moved a little too fast and maybe a level of around about Rs 445 to Rs 455 that would be a good region to maybe initiate a long call in Satyam."

Disclosure: It is safe to assume that analyst & his associate/company/clients may have trading positions in the stocks discussed.