Intraday Range: 16900-17200
Short Term Range: 16700-17400
Intraday Range: 38200-39000
Short Term Range: 37800-39000
Major draggers: All Sectors excluding IT.
Stocks to watch: #ASIANPAINT & #INFY
A probable dark horse: #SHANTIGEAR
ViX was mad yesterday & it can continue to be mad for a while. Global markets are reacting to USD rise and other Geo Political news. Indian Market is reacting as well but still under very much control. Market has broken & closed below 17200, which would now act as a resistance followed by 17400. On downside, 16800 is a rock solid support below which 16650/16600 looks highly likely. I'd start buying from 16700 levels. Slowly that fear mindset is building amongst investors and that's where one can add Blue Chips to their PF.
Position sizing recommended: Medium
Should we be cautious? : Yes.
Area of averaging PF? : 16700
#INFY #TCS #TECHM
Possible trending stocks for tomorrow
We should see an upmove on #INFY tomorrow upto 1420
Intraday Range: 17750-18000
Short Term Range: 17500-18100
Major draggers: IT, Pharma & Media
Stocks to avoid for a while: #INFY & other major IT Stocks.
Stocks to watch: #EICHERMOT & #IDFCFIRSTB
A probable dark horse: #MTARTECH
Global market is sideways to bearish. As long as we don't close above 18100, we'd be consolidating for a while. Below 17750, 17550/17450 are next major supports
Position sizing recommended: Small.
Should we be cautious? : Yes. Keep trailing longs!
IT sector is in pain. There have been a huge short buildup on the major IT companies.
One can trade Put options in the following companies
a) INFY 1460 PE
b) HCLTECH 920 PE
Entry 17 SL
c) TCS 3100 PE
#NIFTYIT #HCLTECH #INFY #TCS
Sectors to focus: Cement, Pipes, Paints for Intraday and IT for swing.
August Target for Infosys - Minimum 5%
1700 is the minimum target
Buy cash, Futures, Options whatever in bulk quantity. Add in your portfolios! Hurry up!
ABSOLUTE FLAT OPENING AT #NIFTY50, LIKELY PRESSURE TO CONTINUE FOR SELLING.
STOCKS TO TRADE ON:
💡 Infosys – Q1FY23 Results 💡
• Revenue grew by 23.6% YoY to INR 34,470 Cr
• Net Profit was at INR 5,360 Cr, higher by 3.2% YoY
• Growth in revenue beats the estimates of 21.5 – 22.5%
• However, Infosys did meet the estimates of 5.5 to 9.5% growth in PAT
• Although there was widespread revenue growth across all business verticals, the margins were affected by supply-side issues and higher travel expenses
• Revenue is primarily derived from financial services, accounting for 30.6%. However, its contribution was reduced by 240 bps Q1FY22
• While the contribution from the communication vertical increased by 80 bps YoY to 13%, Retail continued to be a stable business, accounting for 14.5% of the revenue
• Energy, Utilities, Resources, & Services are still contributing 12.4%, while the manufacturing vertical's contribution increased 240 bps YoY to 12.1%.
• Hi-Technology, Life Sciences, and Other sectors' contributions to overall company revenues also remained steady
• Company added 106 new customers, bringing the total number of active customers to 1,778
• 13% of the total revenues came from the top five clients, 28% from the top ten, and 36.3% from the top 25
MARGINS & ATTRITION
• Infosys is struggling due to supply-side pressures, rising wages, and travel expenses, as well as a decline in utilization because of a higher proportion of new hires. As a result, the operating margins plunged 360 bps YoY to 20.1%
• LTM (Last 12 months) attrition was recorded at 28.4%, up from 27.7% in Q4FY22 and 13.9% in Q1FY22
#INFY #InvestmentIdeas #InvestmentIdeas
*Infosys (Buy): Topline beat and unexpected guidance increase*
# USD CC rev of $4.44bn, *+5.5% QoQ in CC, above our estimate of 3.9% QoQ*. Reported USD growth was +3.8% QoQ
- Driven by ENU, Manufacturing, Comm. and Retail (retail bounced back strongly after weak Q4)
# *EBIT margin of 20.1%, down 150bps QoQ vs 20.8% est.*
- Higher employee cost (240bps, including *wage hike impact of 160bps and 21k net adds*), 230bp utilization drop (40bp margin impact)
- Sub-con (+5.9%QoQ/51.4% YoY) added 20bps to the impact
# *Guidance (unexpected change): FY23 revenue growth guidance revised up to 14-16% (from 13-15% YoY earlier) in CC. Margin guidance moved to lower end of 21-23% range*
# Attrition (LTM) up 70bps QoQ to 28.4%
# *Large deal TCV of $1.7bn, down 26% QoQ/34% YoY*
# Net profit of 54bn, down 6% QoQ and lower than our 57bn est. due to higher tax rate
*Key Highlights from Press Conference*
# Expect Margin to be on lower end of guided range of 21-23%. Are ready to invest for growth
# Attrition dropped on quarterly basis. Sub-con, Utilization and automation key margin levers.
# Seeing impact of macro in a few pockets (eg. Mortgage), but overall not seeing anything concerning. Demand outlook is good across US and Europe for large deals
# Saw good volume growth in the quarter and expect good volumes and deals for 2QFY23.
# People are not asking for discounts, and INFY is giving COLA clauses in contracts. Pricing is stable and seeing no positives or negatives
#INFY 1500CE buy at cmp 37-37.5 tar 48 60 sl 28