Technical quote on Nifty IT Index from Anand James, Geojit Financial Services
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Below the Technical quote on Nifty IT Index from Anand James, Chief Market Strategist at Geojit Financial Services
The Nifty IT index is very close to its nearest peak, and so is TCS. Since TCS constitutes a little above 25% to the IT index. Both their price patterns since 2020 not being dissimilar, there is the question of potential bullish exhaustion creeping in, given the steep rise in a short period. However, IT index is coming off a long period of underperformance, and is still almost 20% below record peak, even though many other sectoral as well as benchmark indices have tested new peaks. This encourages us to remain optimistic on the index, and is positive on seeing new leaders emerging. One such stock is Wipro which is traditionally a slow mover on charts, but has now broken above the neckline of a classic inverted H&S pattern, setting up a move till at least 470-480, within 3 months, that would retrace 50% of the fall since March. Stop loss may be placed three percent below the neckline, which is at 410.
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