Indian IT stocks are in focus in Friday's trade (December 20) as Accenture widely deemed as the benchmark for the Indian IT industry released robust Q1 earnings. IT service provider Accenture reported better-than-estimated Q1 revenue in the backdrop of increasing demand for its services for aiding clients in implementing AI-powered tools.

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The company's first-quarter revenue stood at $17.7 billion and it anticipates annual revenue to grow between 4-7 per cent. Earlier, the company forecasted revenue to grow between 3-6 per cent.

On the development, despite an overall weak market mood, IT stocks stood firm with the Nifty IT index last up 0.07 per cent, erasing most of its early gains. In early trade, the index zoomed as much as 700 points or nearly 1.5  per cent.

From the Nifty IT pack, of the 10 constituents, 3 stocks including the likes of TCS, Coforge and Infosys traded with minor gains, while all others traded in the red.

Zee Business Managing Editor Anil Singhvi's view

The expert held that the increase in revenue guidance by Accenture for the second quarter as well as full year will bode well for the Indian IT industry. Demand for IT stocks will strengthen, nonetheless it will not be very aggressive.

Further, the market wizard advises investors not to take positions in IT stocks in case they open with a big gap-up and instead wait for the correct entry level.

Overall he held a positive view on Indian IT stocks and one can adopt a 'buy on dips' strategy.

In the midcap space, the expert likes Coforge and Persistent Systems. The expert recommends buying Coforge futures for a target of Rs 9,800/ Rs 9,890- keeping a stop loss of Rs 9,575.

Further he also suggest taking positions in Persistent Systems futures for a target of Rs 6,800/ Rs 6,840 with a stop loss placed at Rs 6,600.