Stocks of domestic information technology companies are seen moving in a narrow range around current levels next week backed by investor confidence for the sector despite weak global markets. Most technology companies stocks ended up this week amid a weak broad market because of positive sectoral view. Overall, the outlook on the sector is positive but we don't see any incremental deviations in the short-term. There are no changes in growth expectations. We are expects the impact to be industry-wide and not restricted to Infosys as the pressure to hire staff overseas will mount.
We believe further upside should be capped as there are limited signs of business improvements. Our technical of Infosys will face resistance at 2,500-2,550 rupees and may find support at 2,350 rupees. Stocks of Wipro, which are expected to see some profit booking, will find support in the range of 350-353 rupees. We are expected to face resistance in the range of 375-378 rupees. TCS shares may maintain their up-trend helped by the company's consistent performance. No major selling is expected on this stock.
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