A country runs on Roads, Rails, Institutions, Services, Facilities, Power, Dams, Bridges and Rural as well as urban development. This sector is most important in driving India’s overall growth story and thus is enjoying all the attention in recent times from the Government.
Nifty Infra is comprised of 30 stocks which include: Reliance, Larsen & Toubro, Adani ports, ACC, Ultra Tech Cement, ShreeCem, Eicher Motor, Ashok Leyland, Siemens, Container Corporation of India, BPCL, IOC, Apollo Hospital, Indigo and many more. The Nifty Infra is trading under the influence of the bulls and so is most of the stock it comprises of. It has been making higher highs – higher lows since last eight trading sessions and every decline are being bought into.
Indian IT sector stocks have been just the witnesses of the monstrous rally in Nifty and various other sectors in last five weeks. Now, the audience has become the performers and is all set to rock the stage for the bulls.
NIFTY IT index has surpassed and closed above the immediate resistance of 15800 levels. It has taken support at its 100 weekly moving average and also moved above its upper band of the trading channel. It has been making higher top- higher bottom formation since last five sessions and is now all set to continue the buying on the back of buying an interest in index heavyweight such as TCS, INFY, HCLTECH, TECHM, etc.
Infosys moved above its 725 levels and retested the same and is now all set to move towards 750-760 levels support being intact at 725 levels. TechM held onto the rising support trend line and also surpassed and sustained above its 770 levels, it is all set to continue its up move towards 825 and higher levels and on the downside, support is seen at 770 then 760 zones. TCS in the previous week has seen a strong move of around 260 points and now it has to move and sustain above 2300 levels to move towards 2800 levels while on the downside support is at 2150 levels. ECLERX is all set to form an inverse head and shoulder on the weekly chart and immediate resistance is at 580 a move above the same will pull the stock even higher towards 650 then 720 levels while on the downside support is at 520 then 500 levels.
Nifty as anticipated have reached our target of 12300 which is the immediate resistance thus traders are required to remain cautious ahead of the quarterly result season and Now looking at the current market scenario IT stocks are the safe haven for the traders which looks positive to move towards 16250 then 16500 levels while on the downside support is at 14800 then 14500 levels.
PS: Above given stocks are not recommendations and is just based on the technical study.
Author: Miss.Ayushi Sushil Bagri Equity Research (Investment Services), 21st December 2019