IT midcaps will do serious catch-up: Ashwani Gujral

ET Now spoke to Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, on his views on the IT space.

Any recommendations from the IT space? Fundamentally news has been good, orders coming in way particularly for a TCS which has hit a new high. Would your recommend entry points into some of the front line IT counters right now?

I think that we have recommended already in the last couple of days. I need to look at midcap IT stocks because the valuation gap is becoming quite large and there would have been a serious catch up, so may be percentage returns will be higher in stocks like Polaris, Hexaware, MphasiS.

Those are the stocks people should look at because often when a sector moves, the midcap and the smaller stocks also tend to move after a while. So may be a lot of the run up in the large caps has happened and now midcaps will do a serious catch up. For a day trading kind of perspective, these are all stocks that you can look at.