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CNXIT

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
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
CNXIT : Good time to invest in IT ETF?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. Like, Share, Comment for regular updates. Disclaimer I am not sebi registered analyst My studies are Educational purpose only Please consult with your Financial advisor before trading or investing I may be 100% wrong as its my personal trade. First Learn and then remove "L"
NSE:CNXITLong
by ChartsSpecialist
WORST IS OVER FOR INDIAN IT SECTOR As we can see that given chart the IT sector as form very good base , with bull sash candlestick pattern on last month low with fibonacci retracemet also at that same level suggest how important that level is for price. Bull sash is very pwerful bottom forming candlestick pattern with high success rate. As last week was bearish but this week price gapup plus give closing above previous week high. I suggest to buy top it sectors stock with IT Bees as it is good to accumlate the stock for longterm perspective
NSE:CNXITLong
by bhoirjanmesh3
1
#TVSELECT #DLINKINDIA #CEREBRAINT #PANACHE #AGSTRA #COMPINFO #IT #TVSELECT NSE:TVSELECT CMP: 299 TP: 360 SL: 270 TF: <6m RR > 2.2 times Return 20% Factors: BULLISH WEDGE BREAKOUT Trend Following Rising Volume with rising Prices. Flag pattern breakout. Pennant Pattern Breakout with Bullish Candle. Retest Successful. Higher Highs & Higher Lows. Broken above RESISTANCE levels Trading at SUPPORT levels Earnings are strong. Bullish Wedge Breakout Risk Return Ratio is healthy. And Rising from Double Bottom Pattern to Flag Pattern forming. If you like my work KINDLY LIKE SHARE & FOLLOW this page for free Stock Recommendations. With 💚 from Rachit Sethia
NSE:TVSELECTLong
by Rachit_Sethia
NIFTY IT - Recovery started with Double Bottom Breakout Confirm Key highlights: 💡⚡ On basis of Weekly Time Frame 📊 Currently NIFTYIT has given Double Bottom Breakout with confirmation. 📊 Keep an eye on IT sector's scripts. 📊 Example : LTTS , COFORGE , TECHM 1st Target - 32816 2nd Target - 34381 Support - 30559 ⚠️ Important: Always maintain your Risk & Reward Ratio. ⚠️ Purely technical based pick. ✅Like and follow to never miss a new idea!✅ Disclaimer: I am not SEBI Registered Advisor. My posts are purely for training and educational purposes. Eat🍜 Sleep😴 TradingView📈 Repeat 🔁 Happy learning with trading. Cheers!🥂
NSE:CNXITLong
by radha_23
2
NIFTY IT - Just a viewKey highlights: 💡⚡ 📊 Currently NIFTYIT may take support of level 28663 which was previously working as resistance. 📊 If it is breaking support level one can go for SHORT into IT sector. 📊 Example : MPHASIS & COFORGE for SHORT. IF SUPPORT LEVEL IS BREAK THEN ONLY GO FOR SHORT TRADE. ⚠️ Important: Always maintain your Risk & Reward Ratio. ✅Like and follow to never miss a new idea!✅ Disclaimer: I am not SEBI Registered Advisor. My posts are purely for training and educational purposes. Eat🍜 Sleep😴 TradingView📈 Repeat 🔁 Happy learning with trading. Cheers!🥂
NSE:CNXIT
by radha_23
1
CNXIT - 240 MIN TIME FRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart). Note: its my view only and its for educational purpose only. only who has got knowledge in this strategy will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves. we do not get into bullish or bearish traps. we anticipate and get into only big bullish or bearish moves (Impulsive moves). Just ride the bullish or bearish impulsive move. Learn & Know the Complete Market Cycle. buy low and sell high concept. buy at cheaper price and sell at expensive price. Keep it simple, keep it Unique. please keep your comments useful & respectful. Thanks for your support....
NSE:CNXITShort
by Tradelikemee
CNXIT (Nifty IT) Long, INFY/ BSOFTBat Pattern: It starts with a bullish XA move. AB is then bearish . BC is bullish , and CD is bearish again. XA: This can be any price activity on the chart. There is no specific price movement in Bat chart formation. AB: The AB move should be between 38.2 to 50 % Fibonacci of XA. BC: The BC move should finish between 38.2% and 88.6% Fibonacci of AB. CD: Ideally point D should represent 127% to 161.8% Fibonacci extension of BC Leg. Look for entry at point D once you see the trend reversal. Profit Target: As mentioned in the chart. Stop Loss : should be just below X with a support channel. As you can see from the above chart the NIFTY IT ( CNXIT ) has completed the bat pattern and is moving up optimistically We should see the price touch target 1. Since it's on a corrective wave on Elliot's principle Target 1 is most likely to be completed. MACD has crossed the signal line on a weekly timeframe . INFY ( Infosys ) & BSOFT (BirlaSoft) are on the same trend line as the IT index. Disclaimer: “The above is an idea only and not any kind of any financial advice so please do your own DD (Due Diligence) before any kind of investment”. If you like my TA & ideas!! Want to keep yourself updated with current market action, then please follow my profile for more analysis.
NSE:CNXITLong
by Tron029
CNXIT (NIFTY IT) LongBat Pattern: It starts with a bullish XA move. AB is then bearish . BC is bullish , and CD is bearish again. XA: This can be any price activity on the chart. There is no specific price movement in Bat chart formation. AB: The AB move should be between 38.2 to 50 % Fibonacci of XA. BC: The BC move should finish between 38.2% and 88.6% Fibonacci of AB. CD: Ideally point D should represent 127% to 161.8% Fibonacci extension of BC Leg. Look for entry at point D once you see the trend reversal. Profit Target: As mentioned in the chart. Stop Loss : should be just below X with a support channel. As you can see from the above chart the NIFTY IT (CNXIT) has completed the bat pattern and is moving up optimistically We should see the price touch target 1. Since it's on a corrective wave on Elliot's principle Target 1 is most likely to be completed. MACD has crossed the signal line on a weekly timeframe. INFY(Infosys) & BSOFT (BirlaSoft) are on the same trend line as the IT index. Disclaimer: “The above is an idea only and not any kind of any financial advice so please do your own DD (Due Diligence) before any kind of investment”. If you like my TA & ideas!! Want to keep yourself updated with current market action, then please follow my profile for more analysis.
NSE:CNXITLong
by Tron029
NIFTY ITHello & welcome to this analysis on the IT Index. With Q4 results starting from 2nd week of April, IT stocks will once again be in limelight. If the index can sustain above 36700 it could lead to rally till 37750-38000 where it has a line of polarity besides a Bearish Harmonic Cypher. This continuation of bullish outlook is valid till its above 36000. Failure to hold it would take it down to 35250-34500. Key levels to watch out on both sides 36000-36800 for a trend direction move.
NSE:CNXITLong
by Dinesh_C_Nagpal
1
Nifty IT may take support at this levelCNXIT is traveling in a channel and it got a rejection from the top of the channel we have a demand zone for CNXIT from 34453 to 33500 We are going to be bullish in CNXIT until a daily candle closes below 33500. So we can plan swing trading in this sector and we can take long positions if get any long setup in the stocks which come under this sector but we have to wait until it enter into DemandZone. What we believe in:- °Trade With Logic °Take Time Before Investment Saving Your Capital 🙂 I'm not responsible for your profit or loss. Mainly Stock & Crypto Investor 🕵️ | The Indus Trader 📊 DISCLAIMER:- This Channel Is For ( EDUCATIONAL PURPOSE )
NSE:CNXITLong
by The_Indus_Trader