Long-term investors should buy Patni with stop loss Rs 433: Bonanza Portfolio

In a chat with ET Now, RL Narayanan, Vice President-Equity & Institutional Sales, Bonanza Portfolio, shares his views on the outlook of Patni Computers.

Patni Computers at this point in time at Rs 465 odd levels, would you recommend investors to start entering into midcap IT counters or probably safer bets would the be the large cap front liners like Wipro, Infosys and TCS?

IT has been a supporting role for the entire index. It has not played the reeling role. So, I would not be very optimistic on the entire IT pack at this level of the Nifty though Patni is a very relatively low EBITDA quarter. If one wants to have a perspective for more than a year, definitely Patni is very interesting. One can invest in this stock with a stop of around Rs 433, but if it is for a trading perspective, I would not recommend a buy now.