Positive on Mahindra Satyam: Gaurang Shah, Geojit BNP Paribas Financial Services

Gaurang Shah, AVP, Geojit BNP Paribas Financial Services, in a chat with ET Now talks about IT stocks.

Where would you take your pick in the IT space, front liners or mid caps?

I would go in for a mix of both. We are positive and as a disclosure, we have a buy recommendation on a couple of them. Infosys with a price target of about 3500. If you ask me whether I am going to buy Infosys at 3000+ kind of levels, I would definitely refrain because I guess you could see a little bit of correction coming in given the fact that we are expecting a little bit of weakness coming into the dollar and the rupee getting a little bit of strength. So taking advantage of that short-term negative on dollar, IT might correct a little bit and that will be an opportunity to get into Infosys.

HCL Technologies is the other one from the mid-cap IT pack. Rolta is the third one amongst the smaller ones and of course in the news on November 15 is Mahindra Satyam when they come out with their quarterly numbers. We expect a target of about 130 from 8 months, 12 months time horizon and selectively we are positive on Tech Mahindra and TCS. So these are some of the picks in frontline IT and mid-cap and small-cap IT.