The market is not looking to stabilise at a particular level. It is too volatile now a days. Since February, the Sensex has slipped over 8% and the Nifty by 7.67% till Monday, March 26, 2007.
In the same period, BSE IT Index lost 6.33%. Some technology stocks could lose 12-15% in the next 3-4 weeks, said Technical Analyst Gautam Shah of JMMS Technicals. He also believes that the next leg of the downtrend has begun.
In an interview with CNBC-TV18, Shah said, "I guess clearly there is something wrong somewhere in technology. Last week, you saw the Sensex gain 1000 points and Infosys just did not move. So I guess there is something on the charts, which suggests that some of these technology stocks could lose as much as 12-15% in the next 3-4 weeks, we are maintaining our view."
"Therefore, investors holding on to some of the technology stocks can either just get out, maybe buy back 15% lower or look to hedge their positions because technology and telecom, which have been the best performers in the last one year are likely to be the worst hit in the next few months", he suggests.
Today technology stocks have been hammered more than other stocks. The BSE IT Index is down nearly 3%, which includes, HCL Technologies is the top loser, down nearly 5.5% following TCS by 4.8% and Patni by 4.3%.
