cnxit elliott wave analysis

IT stocks have been rallying for some time now .

They have a considerable share in nifty rally ,Top 10

heavyweights have 2 IT stocks TCS and INFY. These two 

among themselves hold almost ~13% in nifty.Look at nifty weightage here.

Lets look at the cnxit chart.

The monthly chart of CNXIT shows clear 5 up impulse with 5th up in progress.Most of IT stocks are similar to the chart shape of CNXIT.

Would analyse important IT stocks in further posts.Looking at parallel channel the logical resistance comes at 17000.

With usdinr hitting new highs CNXIT has still got good times .I would analyse individual stocks later for now bulls are very much alive and kicking in IT index. Enjoy the rally till it lasts :).

FII Selling in India.

A popular notion among traders FIIs drive Indian markets.

Is it true? Year 2007-2009 this correlation was quite correct.

Offlate this is not happening .

Year 2018  till aug 27th nifty has gone up by ~11% and FIIs have been net sellers for the year.Let me put the figures.

Fii is net seller 23k crs in equity still nifty managed to scale up by ~11% .Slowly this dependence is reducing domestic money is getting bigger .No wonder MF inflows are creating records day by day.Still the equity penetration among indians is way less compared to western counterparts long way to go.

Glenmark elliottwave analysis

I had written about glenmark when the deep correction was on.

Glenmark elliottwave analysis in this post i had projected targets for

downmove bottom.

i was of the opinion the bottom could be in range 530-520  the stock made a low of 500 and reversed and now reading at 660+.A good 150+ move .The stock has potential to do 700 and then 780-800 in coming weeks.This upmove can be a d wave up or a new impulse up which can be confirmed as the upmove matures.Many pharma stocks have shown upmove we have seen in past many pharma rallies got fizzled but this rally looks promising as the wave looks over track all pharma stocks in dips can be bought rather on breakouts.

Why nifty not falling?

Of late social media is discussing overtime why nifty not falling.

Ofcouse chartist would say still resistance not reached ,Though a

fundamental guy would day PE is above 28 still market holding.

lets look at the following detail.

From above table we can see top 10 nifty stocks on weighted average .Reliance is almost 10% and this single super heavyweight has risen by 29% in last two month till today .Only 2 stocks in top 10 are giving negative return in last 2 months .These top 10 stocks hold 51.16% .So nifty is so dependent on these as far as up down move is concerned .So keep as eye on the biggest mover Reliance for hints.