India Morning Report: Infosys’ Big Rebound, Banks to help the climb

Those short on Infosys are a done deal however, those short on the indices may get a  measured exit the rest of the day as Put writers were also in the market in equal force and the Nifty would be jumping back bigger later in the day after Infy alone makes the first 30-40 points up at open

Infosys raised its guidance for FY13 to INR 40,700 Crores after a 39,600 guidance took it to its lowest in recent history and another 39 clients and safe profits of a consolidated INR 2369 Crs , the bellwether is back in the reckoning in a dark quarter with dollar revenues for the Q3 running away to $1.9 B from 1.7 B expected. TCS and Wipro support the reprieve but may soon be under fire for underperforming after Infiosys sets the tone again at the high tide watermark using the quarter to break free from its organisational brouhahas and unsaid unsaids as new CEOs and old Sales Teams get back to mopping up business on brand equity. Margins at Infy did contract in face of the stronger Rupee but shockingly for some, EBIT margins ere only down 70 bp at 26%. 

I expect YES to continue the climb, JET to join after a couple of rallies avoiding mid caps as money flows to the designated bluechips and ICICI Bank and other Private banks come back before the end of the day

Infy is up 12% in opening trade and if I were me I would be accumulating shorts on HCL Tech from today and TCS after a couple of days of industry heat, i.e. near COB Monday and pick up longs in HDFC Bank and HDFC in the hour before that

Nifty 6200 is a done deal if done right and speculators stay happy in Axis Bank and Yes Bank.


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