Anil Manghnani, Modern Shares & Stock Brokers feels that if there is another negative earning, just the way it set up, Infosys could easily fall back to Rs 2,100.
Manghnani told CNBC-TV18, "Clear underperformance is there in CNX-IT. You look at Tata Consultancy Services (TCS), HCL Technologies, they have bounced. There is no real issue there."
He further added, "The main issue is Infosys. It is a tough one to call. It has been an underperformer now over nine months with the 50-DMA trading below 200-DMA consistently. That is going to be a problem going into earnings. It could go either way. I hate to sit on the fence. However, given the way it has beaten down -- if you have even some sort of hope in the numbers, you could see a rally based on under-ownership or short covering. However, if there is another negative earning, just the way it set up, it could easily fall back to Rs 2,100."
"If probably the options are cheap, I guess a straddle would be the safer one to go into. It is right at the lower end where it has traded for quite some time and it could go either way. It is a tough one to take a call but definitely the most weakest of the top four names."
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!
