Top three IT stocks to watch out for Q4FY22 earnings

we have shortlisted the top three IT stocks! 

Nifty ended the last week with gains of 0.64 per cent while the broader markets outperformed the frontline gauges by a wide margin.   

Nifty Midcap 100 and Smallcap 100 rose by 3.58 per cent & 2.69 per cent, respectively. Meanwhile, India VIX cooled off by 4 per cent and slipped below the level of 18. Interestingly, India VIX closed at its lowest levels seen since February.   

Nifty had formed a Doji-like candlestick pattern on the weekly chart. The formation of indecisive candle formation is raising questions about the upmove, which is in progress from March lows of 15,671.   

Going ahead, a lot would depend on the earnings season as it’s likely to dictate the near-term trend of the market. India VIX closing at its lowest levels seen since February suggests that the markets are entering the result season with a positive bias.  

The IT bellwether TCS will officially set afire the ceremonial starters’ pistol for Q4 corporate earnings on April 11, 2022. So, let us check how IT stocks are likely to perform during the Q4 earnings season. Before moving on to the stock-specific performance, let’s check out the performance of Nifty IT index in the month of April.   

During the month of April, Nifty IT index, on average, has delivered returns of about 1.1 per cent and interestingly, three out of the last four years’ performance for the index in the month of April has been mindblowing! As of April 2018, the index had jumped 11.8 per cent; 6.9 per cent in 2019, and 10.5 per cent in 2020, but dipped by 0.7 per cent in 2021.   

Now talking about the stock-specific action amongst Nifty IT pack, out of 10 stocks, 8 stocks have a reputation for delivering positive returns in the month of April. However, we have shortlisted the top three IT stocks! 

Mindtree: Mindtree is likely to report its earnings on April 18, 2022, while the stock is amongst the best-performing stock in the month of April. Meanwhile, since the year 2007, the stock, on average, has delivered gains of 9.6 per cent; hence, keep a close watch on the stock!   

Coforge: The stock has not announced its earnings date as of now but it is among the second-best performer in Nifty IT pack as, on average, it advanced 6.4 per cent in the month of April.   

L&T Technology Services (LTTS): The stock, which scored the third rank amongst the best-performing IT stocks in the month of April, is likely to report its earnings on April 21. On average, it has gained 5.2 per cent in the month of April.