Saturday, January 24, 2009

>CNXIT technical Analysis

CNXIT the IT index is in process of forming a short term bottom
which is evident from the chart attached.
Fundamentally IT may be least favorable as in recession everyone thinks about
cost cutting but for traders it gives a nice trading opportunity.
Chart shows a abc followed by a 5 down which is in process.
The current selling pressure should loose out strength near 2000 which
should hold to strengthen the up move from there.

If we check the individual biggies of IT sector to reach to a conclusion
INFOSYS is retracing after initial surge to 1300 from sub 1200 levels
Analysis of which was posted Infosys Analysis 1300 being resistance
a retrace was expected from there.
TCS is consolidating near a support
Wipro too resting near a support.
Which suggests a rise may be in offing.
Trade idea should be like this buy near 2020-2000 sl 1950
Target will vary according to market condition though 2150-2200 looks
quite achievable .




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