Find out: How to trade IT sector post Infy nos?

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Find out: How to trade IT sector post Infy nos?

In ‘Your Stocks’ IT special, SP Tulsian of sptulsian.com and Hemen Kapadia, chartpundit.com, speak about the IT sector and give their outlook going forward.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » RELATED NEWS Should you buy Infy despite disappointing Q1 numbers? Infy upside capped in single-digit gains: JPMorgan Infosys Tech declares Q1 numbers; stock slips 2.3% Infosys Q1 net profit down 8% to Rs 1488 cr (QoQ) ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

India's second largest IT services exporter - Infosys Technologies has announced its first quarter results of FY11. The net profit declined 7.98% to Rs 1,488 crore as against Rs 1,617 crore, on quarter-on-quarter basis (QoQ).

In 'Your Stocks' IT special, SP Tulsian, sptulsian.com and Hemen Kapadia, chartpundit.com, speak about the IT sector and give their outlook going forward.

Below is a verbatim transcript. Also watch the accompanying video.

Q: Can I enter Infosys at current levels?

Tulsian: Firstly, you are right in choosing Infosys at this point of time. The attrition and the fall in the margin, obviously have been the fear of the market that probably company may have to increase the wage bill and all that, but I don't think that that is likely because you have seen that happening. We heard Mr. Mohandas Pai saying that you have the attrition rate higher in the month of July and then the things should get normalised by August.

In my view day after tomorrow we will be having the results of TCS and then the results will come from Wipro , HCL Tech and overall I don't think that results will be good and we may see the correction continuing in these all stocks, mainly in the larger ones like these three-four stocks, Wipro, Infosys, TCS, HCL Tech. So you should keep a price maybe of Rs 2,730 to Rs 2,750, that will be the right entry point. But I think two years view on the stock is reasonable, a time horizon of two years should be enough to remain invested in Infosys, but with a price target of about Rs 2,750.

Kapadia: Infosys has been traditionally leading the entire IT pack. I don't think that has changed even now. In fact when the markets run from 8,000, Infosys and probably Reliance were two stocks, which led the market out from the pit it had dug itself into.

Having said that, Infosys has also posted a fresh all time high recently, not withstanding what has happened today. We are in an uptrend on all counts in Infosys, daily, weekly, monthly, quarterly, long-term chart, so as of now it looks great. Barring near-term turbulence, Infosys does look like a buy. If one were to rank the stocks, it would be Infosys and Wipro and TCS in that order. If one were to look at something beyond Infosys in IT, something like Infotech Enterprise , Tulip IT and even an Mphasis looks interesting. The IT pack seems to have turned positively for the time being.

Q The IT pack seems to be the favorite at this point in time and considering the fact that this dip may look very attractive, apart from Infosys, which are the other mid-cap IT stocks at you would prefer?

Tulsian: In mid-cap IT, I will go with two stocks, one is Rolta and second is Mphasis. These two are having good upside potential in the time to come. If you take the case of Rolta, it has already been ruling reasonably at the lower end of the price band, it has not really moved much in the last three-four months. Even same thing goes for Mphasis. There has been the corporate news like delisting move and even if you see the earning having posted by the company, my preference will be mainly these two stocks.