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NIFTY INFRA: 4565.55 weekly change (1.05%)

Observation

* On the monthly time frame the NIFTY INFRA index has been forming a higher high higher low pattern since May 2020.

* On the weekly time frame, we can see that the prices moved out of a consolidation phase which has been forming since last 2 months and also in the last week the index sustained above the breakout level.

* On the weekly chart we have shown an upward slopping trend line, which has been acting as support since September 2020. The prices have witnessed a good bounce every time when the trend line was tested. We have also shown the Bollinger bands, wherein we can see the bands are expanding after a squeeze, indicating expanding volatility on the positive side as the prices breakout of a consolidation range.

* On the indicator front the RSI plotted on the weekly chart showed a range shift above the 50 mark in the month of September 2020 and has managed to remain above the same ever since. Currently it can be seen moving higher level, indicating presence of bullish momentum in the prices.

* On the upside 4732 (61.8% extension level of the rise from 2952-4315 projected from 3890) will act as a resistance level above which we can expect the 4961 (78.6% extension level of the rise from 2952 -4315 projected from 3890).

* On the downside the 4465-4427 (multiple touch point level, weekly low and also placed close to the 20 Day SMA) will act as a key support level as it becomes a cluster support, if this range is breached we might see the prices move lower towards 4292 (Swing Low).

Inference & Expectations

* From the long term perspective, the NIFTY INFRA seems to be in a strong bullish phase.

* The price action on short and the medium term charts suggests that the prices are moving out of a medium term consolidation.

* The primary trend of the NIFTY INFRA index remains to be strongly bullish, the secondary trend too can be seen turning bullish as the prices move out of a consolidation, we expect the momentum expansion to take the prices towards the 4732 levels, if the prices managed to breach above the 4732 mark, we might see the prices eventually move towards the 4961 levels.

* Our Bullish view will be negated if the prices breaks below the support cluster of 4465-4427 mark. If the prices breach below this level we might see the prices move lower towards the 4292 mark.

NIFTY IT: 32678.80 weekly change (4.39%)

Observation

* On the monthly time frame we can see that the NIFTY IT index has been in a consistent up move, indicating that the long term trend of the index remains strongly bullish.

* On the weekly chart we can see that the prices have been riding the upper Bollinger bands for the past couple of weeks and have been sustaining above the 20 week SMA.

* For the past 5 weeks the prices have been forming a higher high higher low pattern. In the previous week the prices breached above the 32300 mark, which was 50% extension level of the rise from 10991-27176 projected from 24212.

* On the daily chart, the index has been sustaining above its 20 Day SMA since mid July 2021, indicating that the short term trend of the index is bullish too.

* On the indicator front, the RSI plotted on the weekly time frame can be seen placed above the 50 mark since June 2020. currently it can be seen moving higher level, the MACD on the weekly time frame is placed above the zero line. This points towards the presence of bullishness and momentum in the trend.

* Going ahead the 34215 (61.8% extension level of the rise from 10991-27176 projected from 24212) will be the level to watch for, if this level is breached we might see the prices test the 36934 (78.6% extension level of the rise from 10991-27176 projected from 24212.)

* The weekly low of 31324 will act as a key support level going ahead. If the prices breach above this level, we can expect the prices to move lower and test the 30672 (20 Day SMA).

Inference & Expectations

* NIFTY IT on the higher time frame remains strongly bullish.

* On the weekly chart the prices can be seen breaching above crucial resistance levels.

* From a medium term and short term perspective the prices seem to be gaining momentum and moved higher.

* We expect this momentum to take the prices higher towards the 34215, if the prices breach above the 34215, we might see the prices move higher and test the 36934 level.

* The above analysis will hold true as long as the prices remain above the weekly low of 31324. If the prices breaks and sustain below the 31324 mark we might see further correction in the prices till the 30672 levels.

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