INFOSYS Chart (1995-Till Date)(Click the image to Enlarge)
IT sector is in its last phase of growth of 15 years as explained below:
1. As explained in the chart we are currently at 5th wave of Infosys which will end in 2-3 years. After this Infosys Stock Price will undergo 10-15 years of A,B,C sideways movement as explained in Basics of Elliot Wave theory.
2.The biggest threat I can foresee for IT Industry is Dollar-Rupee value.With the current pace of India's growth I think Rupee can go to 35 in 3 years from 46 currently.If that happens then margins of IT industry will shrink by 25% from current levels due to currency appreciation so that will put brakes on IT growth.(I predicted the Dollar-Rupee movement from 39-52 and back to 46 and I have a target of 35 in long term)
(Please spend 5 mins to read the "Basics of Elliot Wave Theory" Posted on 23'Jan for better understanding of this article.)
Disclosure: My 2% of equity is in Infosys.
Disclaimer: The information in above article are my views only which may be right or wrong.I am not responsible for any trading decision made based on above info.
