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Nifty IT Index

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formation of cup and handle in progress for IT Index.A likely Cup and Handle Structure is forming in IT Index on Weekly charts. It has been underperforming since last 24 months or so. It had reached 39446 levels in January 22. Since then the peak remains unscaled. There were multiple reasons for this. Let us analyze the reasons which resulted in decline of IT Index and let us see how the future looks for it. Reasons for Decline: 1) Rate hike cycle initiated by US Federal Reserves to control inflation. Rate hike cycle was one of the main reasons for underperformance of It index. Rate hike meant decrease in spending and decrease in spending resulted in limited growth of this index. 2) Margin Pressure due to increase in spending. Most of IT companies and their employees enjoyed work from home during COVID. Work from home, worked in favour of many of these companies as there was decreased spending. Now in the post COVID era lot of companies had to/have to incentivise employees to come back to office. Regular spending on electricity, conveyance, office miscellaneous expense again came back to pre COVID levels. This has put pressure on margins. 3) Threat of AI is still looming large on It companies. Still it is to be seen if AI can replace a lot of work many of these companies used to do or not. The scale of effect is yet to be determined in toto but it looks like it will certainly have an effect. Indian IT companies are well known to adapt to the changing circumstances but it is yet to be seen and determined what future hold for IT companies. There was an article doing rounds if IT companies will have a similar fate to the cotton mills of past. The statement looks exaggerated but the days of unlimited growth seem to be over. Investors in service sector have to be rational with their expectations in future. 4) Rising sentiment of Nationalism across the globe. Rising sentiment of nationalism and be local buy local employ locals can also effect a lot of these companies. Hiring locals rather than shipping employees from India on H1B visa will definitely effect profit margins. Reasons why IT Index might rise and shine. 1) US Fed has commented that we are looking forward to at least 1 rate cut in this year. The logic is that if you fall due to rate hike you rise due to rate cut. Market is forward looking and the reason of bottom formation and recent or future rise can be credit to forward looking nature of market which will take into account rate cut or will take into account the same. 2) There are green shoots visible which indicate fresh lease of life to the stagnant or underperforming index. 3) Indian It companies are known for their resilience, deep pocket and adaptability. They are capable of making subtle or large scale changes to their work culture, work ethics and work to incorporate AI and use AI to their favour. (Whether it actually happens is yet to be seen.) 4) On charts if the recent low of 31467 is not broken and future resistances of 35201 and 35962 are taken down we can see an up move towards the targets of 36952, 38530 or even the previous high of 39446. If 39446 is conquered in future within this year with a weekly candle. We can see further upside. Stocks that constitute IT Index are TCS, Infosys, HCL Tech, Wipro, Tech Mahindra, LTIM, LTTS, Mphasis and Coforge. In addition to this selective Mid and Small Cap IT companies can also follow the suit of the big players. In the space of Mid and Small Cap IT companies there are players like OFSS, Coforge, Birla Soft, Affle, Mastek, Happiest minds, FSL, Map My India, Eclerx, Tanla Platforms etc. We are not giving a buy or sell call on any of these companies. This is just an educational article explaining the potential moves of It Index, How it can move in either direction and what can be the reasons behind it. Disclaimer: There is a chance of biases including confirmation bias, information bias, halo effect and anchoring bias in this write-up. Investment in stocks, derivatives and mutual funds is subject to market risks, please consult your investment advisor before taking financial decisions. The data, chart and other information provided above is for the purpose of analysis and is purely educational in nature. The names of the stocks or index levels of spot Nifty mentioned in the article are for the purpose of education and analysis only. Purpose of this article is educational. Please do not consider this as a recommendation of any sorts.
NSE:CNXITLong
by Happy_Candles_Investment
Market View 10 Jun 2004: IT Stocks Expected to Dominate Today What happened in Last 48 Hours: On Daily candle, Nifty IT Index's Buy Signal has triggered and Price has gone above the cloud area plotted by Option Scalper (see chart above). Global IT stocks have also performed well on Friday. On Daily Candle, top 3 stocks (out of top 40 stocks in Nifty50) picked by Zeta Stock Scanner are IT stocks. PM Modi has taken oath and the uncertainty over government formation is over. Only worrying thing is, huge Short Positions of FIIs in Index Futures. They hold nearly 42% Short Positions and just 17% long positions now. It is expected that market will follow global cues and IT stocks will perform well, but overall gain in the Index is expected to be moderate until Thursday by when US FED's interest rate decision will be announced. Instead of Index Options, go after individual stocks as they are expected to give better returns than the index. Happy Trading.
NSE:CNXIT
by jellygill
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.
NSE:CNXITLong
by Happy_Candles_Investment
NIFTY IT | Updated Price Action- Here is an update to the Nifty IT analysis we posted back in 2022. - The price action is pretty sluggish. Literally "Trading in the Zone" ( Get it? If not you need to read that book " Trading in the Zone by Douglas" It will teach you the psychology aspect of trading) - We will keep updating the price action as it unfolds. - In the meantime, look at how NDX has performed post our analysis. What are your thoughts? Feel free to comment. If it helped, Do Leave us a boost 🚀 Disclaimer: We are not registered advisors. The views expressed here are solely personal opinions. Irrespective of the language used, Nothing mentioned here should be considered as advice or recommendation. Please consult with your financial advisors before making any investment decisions. We like everybody else, have the right to be wrong :)
NSE:CNXIT
by TheChartereds
It Index looks delicately poised. (Educational Post)For last few weeks we have been looking at indices. By the study of a particular index we then try to determine about investing in components of that index or the stocks that from that particular index. In the series we will today have a look at IT Index. IT Index is looking very interestingly poised currently. There is a Doji of indecision formed. As of now the bias of this Doji or shadow of the candle looks a little positive. If the index can give a closing above 37345, there is a chance that there can be an upside upto 37892, 38279 or even 38594. In case the levels of 36711 or 36098 are broken there could be drastic fall in the stocks which form this index as the potential fall can lead index to the levels of 35675, 35094 or 34287. Keeping this information in mind you can look at individual charts of stocks like TCS, Tech Mahindra, Wipro, LTTS, Persistent, Infosys, Coforge, Mphasis, HCL Tech, LTIM. For understanding which companies to invest in amongst the bunch of IT pack leaders you will have to study Technicals and Fundamentals of each of the company individually. Thus through various models you can try to determine tops of current rally or trend. You can reverse the process and try find of the probable bottom in case of downturn. Trend lines / Peaks / Valleys and Fibonacci levels will also give you probable supports and resistances in the path. You can become an expert by studying and drawing and reading charts every day. The more you practice the better accuracy you can achieve. Disclaimer: Investment in stocks and mutual funds is subject to market risks, please consult your investment advisor before taking financial decisions. The data provided above is for the purpose of analysis and is purely educational in nature. The names of the stocks or index levels of spot Nifty mentioned in the article are for the purpose of education and analysis only. Purpose of this article is educational. Please do not consider this as a recommendation of any sorts.
NSE:CNXIT
by Happy_Candles_Investment
Endurance Tech - Amazing 2 Cups of Morning Hot CoffeeYesterday after market close - we published chart of Nifty IT stating the IT Sector would snap the 5 day Fall and would bounce back today Reasons for IT bounce: Double Top neckline Support (not broken) 2 support lines from the Gap Up candle (one support at top of Gap and one at bottom) Good rejection seen from DT neckline + both ends of Gap - and price closed just above the Support lines Overall Indian markets turned bullish across all sectors despite weak Global cues from US, Europe & Asia Today - as predicted, NIFTY IT index rose 1.35% in the morning taking all IT stocks sky high Endurance Tech: Double Cup & Handle Pattern (one on Weekly & one on Monthly) gave me the Morning Boost of Caffeine already :) Monthly: Large Cup & Handle (Slanting) with BO above 2350 and Target 3800 Weekly: Inside the larger Handle - on weekly scale another Cup & Handle was formed and BO already done 2 weeks ago with target of 2450. Today's rejection is from the Larger C&H Trendline - which is also expected. One Cup of Coffee done - another one pending :) Keep holding your winners. Remember - we (Stocks-n-Trends) are NOT SEBI registered entity and our focus is not to provide calls. We rather Teach you how to use Technical Analysis to make money yourselves. Learn to Ride the Tide whatever be its Side :) - Team Stocks-n-Trends
NSE:CNXITLong
by Stocks-n-Trends
Decoding the Mystery Behind Dec 20 Fall - The SummaryThere are few more sectors - but I think the above 8 analysis would have given you clarity of what's going on When ALL Sectors face their individual Resistances together and everything starts to fall - it Attracts People's attention and Triggers PANIC causing much bigger Fall. This is Technical Analysis - Undisputable - No Stories - No Assumptions - No Covid - No Santa. If you learn it - you can predict it and save your money. Don't sell your positions now as it has already gone down badly. But next time, when all sectors "Kiss their Resistances and your stocks are at Peak - Book Profits and Wait" If you Truly want to Beat the Market - Master the Analysis first Hope you all like my Analysis and its clear and understandable to all. The cumulative action of Resistances across sectors caused Retailers to see a mass Red activity across the board and triggered PANIC Selling FIIs and DIIs cashed in the opportunity like a Christmas cake 🍰🍰🍰 We were just manipulated. The market will rise soon and whoever sold off the positions would learn the trick Please do Share your Valuable Feedback / Comments (even if you don't agree - let me learn something from you) 🙏🙏🙏
NSE:CNXIT
by Stocks-n-Trends