Infosys may see further downside: Bhamre

Infosys may see further downside from current levels, says Siddharth Bhamre of Angel Broking.

Bhamre told CNBC-TV18, “The data which we are observing in IT, Infosys on that day of its result we have seen huge formation of short positions and after that also fresh formation of short positions were visible but interestingly their rollovers are low so the stock maybe volatile for the next half an hour or so. But we do not see any respite.” He further added, “The stock has further downside from current levels. Even Wipro we have seen very low rollovers but this can be attributed to the change in contract after the de-merger from the other company and standalone IT company which it is right now so low rollovers over there. A lot of people are contemplating that TCS is expensive and one should sell TCS but we are thinking a bit unlike. We do not have that view, the reason being even if one is positive on market and one expects high beta to go up lot of funds do have IT exposure at all given point of time.” “At this point of time people would like to have exposure in TCS and not in Infosys and Wipro. So, even if there is some formation of short positions or some minor supports have been breached or it is looking fairly valuable at this point of time. I believe if you want an exposure in IT space then TCS is it. If one is not a fund house who you are trading into market irrespective of these exposures in this sector then I will completely avoid IT at this point in time – hold on to shorts in Infosys but don’t short TCS, that would be my advice.”