One can go long on HCL Technologies with a stop loss of Rs 620 for the target of Rs 750, as it is a relatively safe bet on the long side, says Shubham Agarwal of Motilal Oswal Securities.
Agarwal told CNBC-TV18, "If we look at the chart of Infosys it was consolidating. No view at all was happening there and what we are seeing today happening is more of a short covering activity because no one was long there and everyone has written the call options at a higher strike price of maybe 10 percent from yesterday's closing and that is why we are seeing such a big move happening there because of the short covering activity. He further added, "I think Rs 2730-2750 will act as an important resistance for infosy. However, if we talk about going long on the overall IT sector the only stock that comes to mind is HCL Technologies and that has been a very clear outperformer within the composition of CNX-IT. So, one can look to go long on the stock, because that's a relatively safe bet on the long side. Hence, we can look for a target of around Rs 750 and a stop loss can be placed around Rs 620."Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
