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NIFTY IT : 37727 weekly change (2.95%)

Observation

* NIFTY IT from a long term perspective can be seen forming a higher high higher low pattern, after taking support at the 20 week SMA.

* On the weekly chart we can see that the prices entered in to a 12 week long consolidation after testing a high of 37823 in the month of September 2021.

* The RSI plotted on the weekly time frame seems to have witnessed a range shift and moved above the 50 mark in the month of June 2020. The RSI has managed to sustain above the 50 mark ever since. Currently it can be seen moving higher, indictaing increasing bullish momentum in the prices

* Going ahead the 39150 (38.2% extension level of the rise from 24212-37823 projected from 33953) will act as a make or break level. If the prices breach above this level, we might see the prices move higher towards the 40760 and 42365 mark (50% and 61.8%% extension level of the rise from 24212-37823 projected from 33953) . 

* The 35500 (Weekly low) will be a red flag level for the index. If the prices managed to breach this level, we might see further downside and the index might correct deeper.

Inference & Expectations

* • From the long term perspective the NIFTY IT remains to be strongly bullish. On the shorter time frame we can see that the prices moved out of a 12 long consolidation.

* The prices action and the technical parameters mentioned above point towards the possibility of increasing bullish momentum in the prices.

* Going ahead we expect the prices to head towards the 39150 mark, if the prices breach above the 39150 mark, we might see the prices move higher towards the 40760-42365 level.

* The RED FLAG level to watch for the index in the sessions to come is weekly low of 35500, if the prices breach below this level our bullish view is negated and we might see the prices correct even deeper.

NIFTY PSU BANK: 2496.60 weekly change (3.21%)

Observation

* Nifty PSU BANK for the past couple of weeks has been forming a lower low lower high pattern after testing the high of 3054 in the month of November 2021.

* On the weekly time frame the prices not only broke below the multiple touch point level and the 20 Week SMA (2583) but also managed to close below it.

* On the indicator front, the RSI plotted on the weekly time frame can be seen moving below the 50 mark and moving lower for the 1st time since November 2020, indictaing increasing bearish momentum in the prices.

* On the downside the 2300 (Multiple touch point level) is going to act as a support level, if the prices managed to breach below this level, we might see the prices move lower towards the 2200-2100 (August 2021 low and September 2019 low).

* Going ahead 2583-2640 (20 Week SMA and Multiple touch point level) is expected to act as a resistance level, if the prices breach above this level, our bullish view will be negated and we might see the prices move higher and test the 3063 (Recent swing high).

Inference & Expectations

* NIFTY PSU BANK on the medium term charts seem to be placed in a corrective phase.

* The technical parameters mentioned above point towards the possibility of increasing bearish momentum in the prices.

* We expect this bearish momentum to take the prices lower towards the 2300 mark, if the prices breach below the 2300 mark we might see the prices move lower towards the 2200-2100

* The above analysis will stand negated if the prices breach and sustain above the 2583-2640 mark.

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