Shares of Indian IT outsourcing firm Infosys ( INFY , quote ) have shed 5% over the past few weeks, erasing two weeks of progress and bringing the stock within range of its two-year low of $46.12. And yet, at least one analyst sees this as an opportunity to buy.
Sudarshan Sukhani of India-based charting firm s2analytics stunned CNBC India by remaining bullish.
"Traders need to focus on Infosys also," he said. "Wipro ( WIT , quote ) remains a buy and so does INFY. In fact, all the four IT majors should be looked at only for buying on dips."
Sukhani may be correct. Over the last two years, the stock has usually traded in the $55 to $60 range, so it could easily return to form unless we are back in a "new normal" mode.
However, even INFY management has taken a much more cautious outlook on the company's prospects.
Analysts at JM Financial report that Infosys executives are concerned about the worsening business environment.
They expect delays in new client decisions and the ramp up of existing contracts, as well as flat or declining IT budgets.
JM Financial expects Infosys to report sequential revenue growth of 4% for the third fiscal quarter.
Even the JMF analysts remain positive on the stock from a 12-month perspective, expecting 15% to 20% returns.