NIFTY IT - Observation
Watch the historic chart of IT index.
It is replicating it's historic movements.
I am expecting IT index to cool down and come near to 21 ema or become range bound for some time now.
I can be wrong as well here.
Nifty it trading in correction of 4 hour chart...and also rangebound trend....now trade in upper range of triangle....pricewise Correction correction is completed when Nifty it till 34400....and expected to till Feb 2022
In the channel, pattern sellers give the impulse move when the buyers struggle to push price higher. the buyers strength is gradually decreasing and the breakout is expected in downside.
IT Sector weekly chart shows uptrend is still intact. Index trading above 30 WEMA which suggests it is in Stage2- Uptrend. Relative Strength is positive as against the Nifty 50 Index. Larger stocks within the index have seen decent correction & seems to be forming bases for next leg of move. Will be considered weak if it breaks down below 30 WEMA. Would start next...
Forming a bullish pin bar pattern today, ie absorbing all the supply at day end.
However, I still do not feel confident to go long on NIFTY because unless this resistance is beaten down, we may fall several times.
Moreover, we also have a gap between 17100 to 17300. Index should cover this gap first.
Will advise to go long only if we get a decisive close above...
CNXIT (IT INDEX-NSE) has show clear up trend. Important levels to check are 35380 and 35140. One can think to enter a fresh buy above 35400 and sell below 35140. Up trend may still continue and resistence are 35370, 35600. Supports on reversal are 35000 & 34850.
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Find BOBALGO on...
Top Down trading strategy
- IT index at RS support.
- Go Long in select IT stocks which are having similar structure to the IT index.
notable IT stocks to initiate positions now:
hcltech
sonatsoftw
ofss
cyient
