IT Sector Revisited

Date 07/22/08 time 2.34 pm

Hi Paresh,
I do not know whether the It stocks are strong or weak from that study, what i know for sure is that the market is going to seen untold trouble in the months ahead. It is prudent to be able to see what can be the downfall. I remember some people here in the forum last year whenthey were arguing about how investors r better off then traders. I remember distinctly one "juhi" who as very sure of being a investor and she went through pains to explain to me once how investors are better off as against traders. If at all anybody has been able to make it through these times i think it is the one who was nimble enuogh to admit and move on. 2009 is also going to be such a year for IT, those of the companies who admit it is going to be bad will benefit, if like juhi they fight the elements, the stocks are going to get battered.

Hi Neeraj, you are right. The whole IT discussion started after 'juhi' posed a Q about Infosys if I remember correctly. Anyone who purchased INFY at around 2400 thinking it was too good to pass up, must be smarting everyday for money tied up and lost opportunities. Guess that's part of the game. We all go thru that in one stock or the other. I also remember a study which said that 'generally speaking, if you hold shares for 5 years, you have 90% chance of making profit; and if you hold for 10 years, you have 95% chance of making profit.'

But these days, when the market is meandering sideways in a volatile fashion, it is best to be nimble and trade. Make your money work smartly assuming you have time to watch and trade. If you don't, it is best to let someone else handle your funds like MFs, PMS etc.

Even in rallies like yesterday, IT stocks find it hard to participate. Today, rupee is standing firm against $ which does not augur well for IT. Talking about INFY, it is a good bet to short it at 1650 (with a strict stoploss needless to say)

Thank u for the interesting information

Date 09/26/08 time 10.04 am

Hi All,
With regards to the way prices have got a way of humbling the ones involved in intellectual high thinking, i am reminded of the shakespearean sonnet
Death lays its icy hands on kings
Secptre and crown must tumble down
And in the dust be equal made
With the poor crooked scythe and spade.

Nobody, mind u nobody is above the dictates of the market, and all analysis will fly into thin air if u cant seem to read prices. Prices tell u all.