Technology to struggle from here on

What to do with technology now? That’s the question everyone is asking as the Sensex is inching towards 17K.

Nobody wants to be in that pack anymore just for the moment because their headwinds are very large 39.75 and if you are watching the rupee to play technology, you are telling yourself I am getting $3 billion in four days where is the rupee going let me not ask that question, it’s probably going one-way. And technology is just going to struggle from here on.

This is just too much which is moving up; in a market where Reliance is moved Rs 500 in four days or five-six days where you have got stocks moving 10-15 per cent a day, do you want to be a contrarian player and buy a stock because it’s been under-performing and you think that there is value which will move up.

That’s not the way people trade. Now this is a momentum market, it’s had a blowout, it’s in a blowout phase and in a blowout phase, people want to be on the fast moving items.

You want to be in the fast moving platforms, you do not want to be a cute contrarian trying to buy something which is not moved for the last many months. I suspect technologies probably has more pain.

Periodically, you will see those bounce backs like you saw last week, but with the rupee at 39.75 and with the kind of money which is getting into the market; Infosys is trading at Rs 1,500-1,600-1700, I don’t know where Satyam and Wipro are going. They all are at 52-week lows and their under-performance will continue for sometime unless something dramatic happens.