TRADE IDEA ON MINDTREE FUTURE FOR 18 JAN 2017

“BUY Mindtree ABOVE 502 TGT 515/530 SL 485”

Primary trend of the stock is bullish and it may consolidating NEAR  the 500 level .It is expected to continue the bull run with the crossing of the resistance level of 502, as the stock is sustaining above its 200 and 50&22 days moving averages with 50 RSI. One may initiate the long position above the mentioned level for the targets of 515 and with the strict stop loss of 530.

RESULT ON 19-JAN-2017 Midcap IT company Mindtree  third quarter profit is seen rising 11.8 percent sequentially to Rs 106 crore but dollar revenue may remain unchanged at USD 193 million, according to average of estimates of analysts . Revenue in rupee terms may increase 0.5 percent to Rs 1,303 crore in December quarter compared with Rs 1,295.4 crore in previous quarter. Operating profit during the quarter is expected to rise moderately to Rs 166 crore from Rs 162.1 crore and margin may expand to 12.7 percent from 12.5 percent on sequential basis due to absence of wage and restructuring related costs.

Reversal To Be Seen Only If Nifty Closes Below 8351   

Technically, Indian Stock Market is still in positive zone. Market looks to be overstretched
and we can expect some profit booking at this point of time. BankNifty still looks stronger than Nifty and other indices. Market would see reversal once it closes below 8351 levels for Nifty and 18862 levels for BankNifty. Until then traders can hold long positions with strict stoploss of 8351 for Nifty spot levels on closing basis. Consolidation would continue until Nifty breaches 8460-8500 levels on the positive side.