IT stocks could see 25 per cent upside, says CEO
Octanom Tech and Hedged CEO Rahul Ghose expects the IT sector to extend its rally as chart patterns suggest a reversal.
Octanom Tech and Hedged Founder and CEO Rahul Ghose expects the IT sector to extend its rally further, according to a Moneycontrol report. Ghose stated that Nifty IT has formed back-to-back bullish engulfing candles on the monthly timeframe, which he described as a strong reversal signal after a period of underperformance.
The Nifty IT index reclaimed 32,500 on Friday and gained approximately 17.7 per cent over the past month. Ghose suggested that investors should use dips to accumulate rather than chasing strength.
Ghose identified Coforge as a stock worth accumulating on every pullback. He also noted a similar chart structure in Tech Mahindra and recommended keeping it on investors' radar.
He said that both stocks are heading into all-time-high territory with no overhead supply. While precise targets are difficult to set, he noted that a 20–25 per cent upside is technically possible over the medium term.
Regarding Apollo Hospitals, Ghose said the setup is promising as the monthly chart has formed a classic hammer. He noted the stock closed at Rs 8,448 this week, its highest level of the week, with delivery volumes on October 28 being about 79 per cent above the 5-day average.