Q1 results 2023: After announcement of Infosys Q1 results 2023 in the week gone by, all four major Indian IT companies have declared their first quarter numbers for the current financial year. As Indian stock market is in bull trend and IT stocks are trading at highly discounted prices, it is important from a long term investor’s perspective as to which IT company has delivered better Q1 numbers and which large-cap IT stock is comparatively better for long term investors.
According to stock market experts, out of Tata Consultancy Services (TCS), Infosys, Wipro and HCL Tech, Infosys and HCL Tech have cut down their revenue growth outlook fro the financial year 2023-24, hence these two large-cap IT stocks are expected to remain under pressure and trade sideways to negative in short term.
TCS has delivered comparatively better Q1 results 2023 among these four. But, from technical perspective, Wipro is looking positive as the market has discounted the Q1 results impact on the IT stock.
Infosys vs TCS vs Wipro vs HCL Tech shares
Commenting upon the Q1 results 2023 of four Indian IT majors, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Out of the four large cap Indian IT companies, TCS has delivered comparatively better quarterly numbers in comparison to other three IT companies. But, due to weak guidance call by Infosys, most of the IT stocks are expected to remain under pressure in short term. Hence, fresh entry is advised in TCS shares at around ₹3,300 apiece levels.”
On what chart pattern of these four IT companies suggest, Sumeet Bagadia, Executive Director at Choice Broking said, “Wipro share price may witness buying interest at support levels as market has already discounted its Q1 results and now Infosys led sell off has further brought this IT stock at an attractive levels. One can buy Wipro shares at current levels and keep on accumulating till it is trading above ₹380 apiece levels. On trend reversal, Wipro share price may touch ₹440 levels in short term.”
For those who have TCS shares in their stock portfolio Sumeet Bagadia advised such investors to maintain strict stop loss at ₹3,280 levels. On trend reversal, TCS shares may go up to ₹3,600 levels in near term.
On technical outlook of Infosys shares, Gaurav Bissa, Vice President at InCred Equities said, “Infosys shares have witnessed a strong correction after it announced weak results. The stock has reversed from a descending trendline hurdle on the weekly charts. However, the stock is currently trading above the previous swing low of ₹1250. On long term charts, the stock is trading comfortably above the 15-year ascending trendline breakout area suggesting the structure remains strong for the long term. In the short to medium term, the stock may oscillate between ₹1250 to 1500 range. Long term investors can use this dip as a buying opportunity with a time horizon of 18-24 months for fresh lifetime high levels in Infosys shares.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 22 Jul 2023, 08:58 AM IST