ITNifty

Nifty IT indices consist of 10 major stocks.

As per the latest data, Nifty IT indices have a weightage of about 15.36 % in the nifty.

After financial sector, IT sector move impacts the nifty also unless and until the other non- performing sector take the charge.

Nifty IT is down almost 29% from the high’s.

IT sector given almost 130% return from the 16000 where we see COVID fall. If I calculate from the COVID bottom then almost 240% returns.

After 100-200% returns, we correct almost 25-30% we start fearing from the market due to news Europuria, Bull phase in market ends, Market makes the top.

Global Market also start fearing you.

Those retailer’s open there demat during COVID period, Market always test the person whether it is capable of that return in near future or not.

Companies list of Nifty IT indices with weightage.

NIFTY IT TOP 10 COMPANIES WITH WEIGHTAGE

Nifty IT current price

Right now when I am writing this post it is trading near 30000 levels.

Nifty IT charts analysis :

For the past 7.5 months, the IT sector has not gone anywhere. It is in correction mode and As I shared above the 15 % weightage of the market which consists of 10 IT major stocks is not performing at all.

It is in a major downtrend. As per the technical analysis of the IT sector analysis.

Daily RSI of nifty it indices is at 28.3 as per the trendlyne studies

Which is in the oversold category.

All other indices that are financial, Pharma, construction, Auto, and Metal are not performing at all.

The monthly chart of Nifty IT indices

It is showing that the price whenever comes near 20 or 50 EMA bounces up and big players accumulate the stocks at this level.

If you see previously data when the covid fall then the price quickly reverses from that level.

In the longer run, it shows that the overall trend is bullish and bearish for the shorter term but not bearish the long run.

For the long-run trend is bullish we should be ready for this kind of correction to buy at such levels.

Monnthly RSI of nifty it is near to 50 levels that shows profit booking from the highs that are from the overbought zone.

As per above weekly RSI of Nifty IT indices is at the levels of 25-30 zone which is an oversold area. Index is below the major moving averages.

Daily RSI of Nifty IT indices is at the levels of 15-20 which comes under high oversold

So, overall if you see in the short term the IT sector is highly oversold.
If you sell at the end of the trend then surely you gonna be trapped in the fake downfall.

We can’t time the IT sector when it will reverse but we surely say that RSI is indicating the market is oversold, wait for a positive price if you want to add for the short term.

And also long-term trend buyers are ready with their cash to buy at these levels.

I talk about from monthly to daily that is from longer to shorter-term picture that overall trend is bullish and this is a temporary fall.

The more you go in a shorter time frame like below daily which is 1 hour or 30 min or 15 min it is highly volatile.

Towards closing market today we have seen buying in the second phase.

So, keep your cash to play the long trend. We can see anytime sharp move on the upside stay cautions in the market.

Short covering leads the market move higher.

In the May end, we see huge buying.

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