Bullish on CMC, MindTree: Gaurang Shah

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, gives his views on midsized IT names.

ET Now: What would you be doing with the midsized IT names because that is the sector to talk about today and the downside at least, the kind of correction that we have seen and a vicious one and of that in CMC or a MindTree quite a bit of run-up in the stocks and a whiff of disappointment from CMC and a lot of these have seen profit booking?

I would not be too concerned or disappointed. And like you rightly mentioned over the last couple of weeks or months, we have seen significant of uptick in some of these names and whenever corrections are there, they are quite severe and they come in a very short span of time. Like I mentioned earlier, I do not think there is going to be great concern going forward in the quarters to come by or companies like CMC Limited to come out from the kind of negativities that the market has possibly views the number with. So I would say that yes I mean with little bit of more correction, the stock is already down 11% today, a 3% or 4% downtick would definitely be an opportunity to buy and so is the case with MindTree. We believe that the one off earnings and concerns cannot just write off the stock. They have been performing well. They have run up to a great extent and you would possibly view it as a profit booking but I do not think there is great concern fundamentally on these names so we would use it as buying opportunity at lower levels.