Index Alert:IT Index is showing a possibility of strong breakoutIT Index has given a proper closing above both 50 and 200 days EMA (Mother and Father Line) at 34023. It was threatening to do so since few days. All it needs to do for confirming upside is a proper bullish candle tomorrow and closing above important resistance levels of 34269 and 34632. If this happens the next levels of resistance for IT index will be 35337, 35731, 36591, 37690 and 38000+. This indicates a strong possibility of a Bull-Run in most Large It stocks. Mid and Small Cap It may also benefit. This may be due to possibility of a rate cut by US FED. If it does not happen the chances of rally fizzling out are also there. So cautiously investor can start picking up large cap It stocks in X/2 or X/3 or SIP Mode. On the lower side if there is no good news from US the support levels are 33947 and 33759 (50 and 200 days EMA - Mother and Father line), followed by 33391 and 32627. The bottom for It index currently as per chart can be seen at 31385. Infosys, TCS, HCL Tech, LTIM, Tech Mahindra, Wipro, Mphasis, LTTS and Coforge. Other It stocks like Mastek, Happiest Minds, Birls Soft, FSL etc. should also be on investor radar. Choose wisely and never forget stop loss in uncertain market.
Note: IT Companies happens to have my strong bias since decades. It is one of my Favorite index for investment purpose. My portfolio is quiet heavy on IT. During the recent fall, I have personally increased weightage of It in my Portfolio. Please do your own additional research and invest wisely.
