IT stocks poised to move higher from current levels: Kranthi Bathini

There is a great buying opportunity at lower levels for investors

https://www.money9.com/news/markets/it-stocks-poised-to-move-higher-from-current-levels-kranthi-bathini-48518.html

omestic equity markets ended the last session of the June series futures & options (F&O) over half a percent higher.

The S&P BSE Sensex rose 393 points, or 0.75% to close at 52,699, while the broader Nifty50 index ended the session at 15,790, up 103 points, or 0.66%. Information technology (IT) stocks led the rally, the index was up 2.8% while the Nifty PSU Bank index dragged and closed 1.4% lower.

“Investors have been moving profits at higher levels but also there is buying interest when markets dip. We are witnessing a range-bound trade in markets. There is a slowdown in FII activity as well,” Kranthi Bathini, Director – Equity strategy, WealthMills Securities said.

“I believe there is a great buying opportunity at lower levels for investors even in current markets”, said Bathini.

On whether the IT sector will continue to build on the momentum, Bathini said that the IT sector is poised to move higher and the companies are going to expand in the US once things get normalised and business comes back. Rupee depreciation is aiding growth in IT stocks. “I advise investors to invest in large and mid-cap IT space,” Bathini said.

In an interview with Money9 in February, Bathini said that Quickheal Technologies has given an absolute return of 72% from Rs 163 and is currently hovering near Rs 270. He believes investors can now book partial profits on the stock.

The other stock from the IT space he is bullish on is KPIT Tech which he had shared as a stock recommendation in April at the price of Rs 193. The return on the stock so far is about 33%. Bathini believes there is more steam left and investors could continue to hold the stock.

Apart from the IT sector, Bathini also shared his top bet for long-term investors. He believes investors with a high-risk appetite can invest in Centrum Capital which can be a money-spinner in times to come. The financial services company having several finance-related subsidiaries. It is on course to become a full-fledged bank in the coming times.

“I expect an upside of 25% upside from the current levels of Rs 46”, said Bathini.