Index Study of the week - IT IndexThe index we will study and try to analyse this week is IT Index. Having look at the chart we can understand that IT Index is trying to give a major trend line breakout. If the IT Index can give a closing above 33449 next week what looks probable is a decent come back in large cap IT stocks. The IT Index made a bottom near 26192 and has been consistently moving positively since April 23. It got a much needed correction between September 23 and October 23 but is again trying to move positively after having take support of 50 Weeks EMA during end of October 23. The range between 33449 and 34298 will prove to be a major hurdle but once we get a closing above both levels IT index can see a major move in the next few months leading to General election in April/May 24. The up move can be around 10 to 20% in the next 6 months to 1 year. Somewhere in the range we might also see a support retest / consolidation / reversal but overall correction phase in It index seems to be over for now.
In order to capitalize on the future probable move in the IT Index One can have a look at the companies which constitute this index. Some of which are: Infosys, TCS, HCL Tech, Tech Mahindra, Wipro, LTIM, Mphasis, Oracle and Coforge. Amongst these companies you can select the companies that gave great result and are looking good in Techno-Funda Evaluation. To learn more about Techno-Funda evaluation of the company you can contact me and follow our content on our other Social Media Accounts/Tradingview.
