Wait and watch for correction in front line IT stocks: Sajiv Dhawan

In a chat with ET Now, Sajiv Dhawan, MD, JV Capital Services, shares his view on front line IT stocks.

ET Now: A call on Tech Mahindra.

Sajiv Dhawan: Tech Mahindra is not one that we really following that much. The ones we have liked and consistently done so have been TCS and HCL. The problem with those two is that they have gone way beyond where we thought they would do with the timeframe. Even if you look buying HCL, even a Tech Mahindra or any of these front line stocks at the moment, you will have to expect very-very good results going for another next few quarters and the targets which will come out today are maybe at best 10% to 15% higher. So the risk reward for fresh investment is probably not there. If you are short-term trader, you are playing with a trend then it is probably fine to be long but from an investment perspective, I would wait for pretty decent correction in some of these tech stocks before you go in and buy from an investment perspective.