Infosys should be trading between 2950-3050: Jagannadham Thunuguntla

In a chat with ET Now, Jagannadham Thunuguntla, Equity Head & HoR, SMC Capitals, shares his views on Infosys. Excerpt:

ET Now: What do you expect from Infosys, which is one of those stocks which is in the red today in terms of earnings?

Jagannadham Thunuguntla: Two things that the market will keenly watch are the margins sustainability and management changes. The stocks should be trading between 2950-3050, that is a Rs 100 range till the time of results. It can be 10% upside,or a 10% downside.

ET Now: From the large caps, what is it that you are recommending?

Jagannadham Thunuguntla: Till the time of Infosys results, there will be result anticipation rally. TCS is having a fantastic rally. It will not be surprising if we see around 2100-2150 levels even by the time Infosys results and TCS results are out.

Whole dynamics will change once the results come up. Till that point I feel the momentum should continue at least till the point of Infosys results.

ET Now: What do you do with some of the other midcap IT names like Persistent Systems, KPIT, Mastek as they have been having a good run in the last three or four days?

Jagannadham Thunuguntla: KPIT rally may still be on the cards. IT stocks - both large cap and midcaps - are finding lot of investor interest. For KPIT Cummins, at least 150-160 levels may be happening soon.