The bull run in IT index starting from 1996 has ended with a blow off rally in Dec 2024. From the top 46090 levels we have seen a fall in 3 waves reaching 38% retracement in wave "w" , What will follow is bounce in wave "X".
Chart suggests:
A major secular advance likely peaked.
A large corrective phase is unfolding.
One strong recovery rally is probable.
A deeper final correction may occur in wave "Y" before the next multi-year opportunity.
My interpretation:
The Nifty IT Index is likely in Wave (w) or early Wave (x).
A recovery toward the 39,000–40,500 zone is probable.
That rally may be followed by a deeper Wave (y) decline toward 17,500–23,000.
The long-term secular story remains intact, but the sector is still undergoing a major valuation and business-model reset.
Chart suggests:
A major secular advance likely peaked.
A large corrective phase is unfolding.
One strong recovery rally is probable.
A deeper final correction may occur in wave "Y" before the next multi-year opportunity.
My interpretation:
The Nifty IT Index is likely in Wave (w) or early Wave (x).
A recovery toward the 39,000–40,500 zone is probable.
That rally may be followed by a deeper Wave (y) decline toward 17,500–23,000.
The long-term secular story remains intact, but the sector is still undergoing a major valuation and business-model reset.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.