Nirmal Bang has come out with its technical report on CNX IT Index. According to the research firm, the Cnx IT Index is likely to outperform the Nifty Index. One can buy Infosys, TCS and HCL Technologies.
Nirmal Bang has come out with its technical report on CNX IT Index. According to the research firm, the CNX IT Index is likely to outperform the Nifty Index. One can buy Infosys, TCS and HCL Technologies.
CNX IT INDEX 6,936: The index has breached the symmetrical triangle pattern with a big bullish candle along with a rising window pattern which further validates the breakout. The RSI & MACD indicator has exceeded its 2012 highs and has entered into the bullish mode. The immediate support for the index is at 6,700 & 6,650 levels on the downside. The index is likely to rally and test its July'11 highs of 7,590 & triangle pattern hints for an upside breakout for a long term target of 8,090 levels.
CNX IT INDEX (RSC 1.165): The chart (In the pdf attachment) hows the Relative strength comparison (RSC) between Cnx IT Index & Nifty Index. We have considered Cnx IT Index prices in the numerator versus Nifty prices in the denominator. The ratio after taking support at the dashed trendline has breached the falling wedge pattern and the ratio is expected to move higher and test the levels of 1.24 & 1.32 which indicates that the Cnx IT Index is likely to outperform the Nifty Index.
INFOSYS Rs 2,875: The stock has been in a long term uptrend and has held the historical support of Rs 2,200 & Rs 2,180 levels. The stock did manage to violate the long term support line drawn from 2003 lows but held above the 2010 & 2012 lows which kept the bulls interested. The stock has exceeded the falling resistance line drawn from its January'11 high which confirms the trend reversal and resumption of the original trend. There is a breakout from an ascending triangle pattern which hints for a long-term bull run. We expect the stock to test the levels of Rs 3,200 Rs 3,430 in medium term perspective & Rs 4,045 levels in long term.
TCS Rs 1,455: The stock has been a complete outperformer since 2009 and has been in an uptrend forming a series of higher highs & low. The counter has managed to exceed its recent swing high which confirms the continuation of the uptrend. The RSI has exceeded its falling resistance line drawn from the 2009 highs which is a bullish signal and indicates that one can expect further upside into this stock.
HCLTECH Rs 722: The stock has outperformed the markets since March'09. The counter is in sharp uptrend forming a series of higher peaks & troughs. Recently the stock observed a sharp rise after the bullish breakout from the long term rising resistance line. The RSC also confirms the uptrend as the indicator has managed to form series of higher peak. The price has breached above the multiple resistance along with sharp rise in volumes and is currently trading above the support line drawn from its June'12 lows.
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To read the full report click on the attachment