It seems Nifty IT is about to break the trendline on downside. If it does, then certainly it would be great trade with RR 1:4.
It will become again stronger above 30740 levels. It broke that levels once but could not sustain the same. However, it shows bears are more stronger than bulls.
RSI has been oscillating between 60 & 40 levels. Watch for level 40 break...
Since the IT sector is correlated with US market and the US market is kind of in an overvalued state and is showing signs of reversal, there is a very high probability that its ripple effect is going to be there in Indian IT sector also.
So I'm expecting a crash in IT and will utilise the opportunity by buying ITBEES, when CNXIT falls to the low of the channel.
CNX IT on the verge of breakout above 31,100. It would be worth keeping an eye on the whole IT pack. Many like TECHM have been breaking out.
❤ & follow?
NIFTY IT - In Reversals 🏳pole pattern
Time frame : MONTHLY
Objectives - Investors should cautious on IT index
1. Big Time Frame range 26000 32000
2. Daily time frame 27700 To 31200
3. Reversals pole pattern
4. Below 26000 we can see more bearish zone
5. Invalid above 32000
Above chart Valid for long term purposes- short term we can see up & down...
nifty it is giving triangle pattern breakout on monthly frame , most of the mid size comapny has already moved significantly like cyient, sonata,newgen, nucleus
It seems that NIFTY IT is showing strength where as BNF is weak. So it may be possible that money is moving from BNF to NIFTY IT. Look at strong name like HCL Tech etc. Basically stocks which are above 200 DMA and 50 DMA. 50 DMA should be above 200 DMA
There has been a strong support held on Weekly and Monthly chart. Technically we can also say Triple Bottom. As of MACD, a hidden bullish divergence has been formed. We can start acquiring from now for a long term investment through ETFs, Mutual Funds SIP etc.
CNXIT again trading near Weekly support, this could be good time to start adding IT ETF in portfolio for long term. if it goes down more, there is another strong support to add more.
This my personal study & for educational purpose only. I may be 100% wrong.
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Disclaimer
I am not sebi registered analyst
My studies are...
FED is preparing the mood of the markets for a "Mild recession"
That could turn out to be a deep recession as FED is not yet ready to pivot
India-NSE IT index is sharply down compared to other sectors
NiftyIT : Dual RS chart w.r.t. Nifty50
🔹Divergence b/n Long RS (green) & Short RS (blue)
🔹+ve Short RS signifies outperformance in short term
🔹Long RS bottomed out as oversold in long term
🔹presently, the only sector exhibiting such attributes
✅ Best Risk/Reward
Be careful when you trade NIFTY IT stock, it is in long term support
Bullish when Price> EMA 40
Bearish When support level breakout on closing basis
consolidation may come for 10-12 days
NEGATIVE SIDE :
1. Nifty IT broke the major support level at 34450pts during the last trading session.
2. The two major rejection candle at the level 36750pts in the recent time is so crucial. This is because of the two major correction happened in the past one in 2000 and the other during the corona situation. Both the corrections have the 4.236 fibonacci level...
