Don’t expect high volatility in Infosys tomorrow, say analysts
Infosys stock price is already factoring in 8-10% growth in dollar-revenues. So, don’t expect fireworks post results tomorrow.
By ET Online |
MUMBAI: Shares of Infosys are known to react strongly after quarterly results. The stock has opened with a gap-up/down of over 9 per cent post results in the last one year after.
However, analysts are of the view that the stock may not see too much volatility this time. The IT major is slated to announce its second quarter results tomorrow (Friday).
The market is expecting the company to perform better on the back of rupee depreciation, hopes of a pick-up in demand from the US and Europe, and also as sentiment turned positive after Narayan Murthy stepped in.
Infosys is likely to report a 3 per cent increase in revenues to $2,050.7 million for the quarter ended September 30. Revenue growth in dollar terms is seen at 2.0-3.5 per cent.
Everyone will be focusing on the dollar revenue growth guidance. The street is expecting it to announce guidance to 8-10 per cent against 6-10 per cent.
However, Infosys stock price is already factoring in 8-10 per cent growth in dollar-revenues, say analysts. They don’t expect fireworks post results tomorrow.
“Infosys has been turns highly volatile post results since the last few quarters. This time around, this may not be the case. Expectations of a 8-10 per cent have already been factored in. In case, the company obliges, then the stock may see move 2-4 per cent up and then take a breather towards Rs 3,100. If the guidance disappoints, then the stock may correct 3-4 per cent,” said Gaurang Shah, Vice President, Geojit BNP Paribas Financial Services.
Parag Doctor, Head- Trading Strategies, LKP Securities, also expects the stock to remain rangebound tomorrow.
“If it crosses Rs 3,200 then some more upside may be seen. We are not expecting too much volatility in the stock. It will move between Rs 2,900-3,250,” he said.
Meanwhile, Somil Mehta, Sr. technical Analyst, Sharekhan, is positive on the stock as technical indicators look bullish.
“Momentum indicators MACD is on the buy side. It has broken out of a narrow trading range. I don’t see too much negativity in the stock,” he said.
The stock ended at Rs 3,146, up 1.24 per cent, on the BSE. It touched a high of Rs 3,155 and a low of Rs 3,092.20 in trade today.
However, analysts are of the view that the stock may not see too much volatility this time. The IT major is slated to announce its second quarter results tomorrow (Friday).
The market is expecting the company to perform better on the back of rupee depreciation, hopes of a pick-up in demand from the US and Europe, and also as sentiment turned positive after Narayan Murthy stepped in.
Infosys is likely to report a 3 per cent increase in revenues to $2,050.7 million for the quarter ended September 30. Revenue growth in dollar terms is seen at 2.0-3.5 per cent.
Everyone will be focusing on the dollar revenue growth guidance. The street is expecting it to announce guidance to 8-10 per cent against 6-10 per cent.
However, Infosys stock price is already factoring in 8-10 per cent growth in dollar-revenues, say analysts. They don’t expect fireworks post results tomorrow.
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“Infosys has been turns highly volatile post results since the last few quarters. This time around, this may not be the case. Expectations of a 8-10 per cent have already been factored in. In case, the company obliges, then the stock may see move 2-4 per cent up and then take a breather towards Rs 3,100. If the guidance disappoints, then the stock may correct 3-4 per cent,” said Gaurang Shah, Vice President, Geojit BNP Paribas Financial Services.
Parag Doctor, Head- Trading Strategies, LKP Securities, also expects the stock to remain rangebound tomorrow.
“If it crosses Rs 3,200 then some more upside may be seen. We are not expecting too much volatility in the stock. It will move between Rs 2,900-3,250,” he said.
Meanwhile, Somil Mehta, Sr. technical Analyst, Sharekhan, is positive on the stock as technical indicators look bullish.
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“Momentum indicators MACD is on the buy side. It has broken out of a narrow trading range. I don’t see too much negativity in the stock,” he said.
The stock ended at Rs 3,146, up 1.24 per cent, on the BSE. It touched a high of Rs 3,155 and a low of Rs 3,092.20 in trade today.
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Opening of Infosys after results in past one year:
| Quarter | Gap-up/down opening |
| Q1FY14 | Opened up 10% |
| Q4FY13 | Opened down 10% |
| Q3FY13 | Opened up 9% |
| Q2FY13 | Opened down 7% |
| Q1FY13 | Opened down 9% |
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