NiftyIT - CNXIT - Weekly -Cup and Handle
Nifty IT Weekly analysis of the Nifty IT Index, showing a Cup and Handle pattern
Key Insights:
Cup and Handle Pattern:
The pattern began forming around mid-2022 and completed by 2023.
The breakout from the handle occurred around 38,539.00, which is a critical support level now.
Measured Move and Target:
The chart projects a potential upside target near 51,077.75, based on the height of the cup.
A 48.01% gain from the lowest point of the cup is also marked, giving more context to the potential upside.
The measurement from the cup's bottom to the breakout level shows a 32.48% gain potential from the breakout point.
Price Action:
The index reached a recent high of 43,645.90 before pulling back slightly to 42,089.30.
The pullback might be a healthy consolidation after the strong upward move.
Support Levels:
Key support is identified at 38,539.00, which was the breakout point of the handle.
The chart shows another strong support level at 26,164.20, which was the bottom of the cup, though this level seems far from the current price.
Conclusion:
The Nifty IT Index appears to be in a bullish continuation phase after breaking out of a multi-month cup and handle pattern. While the target of 51,000 seems plausible, a healthy pullback or consolidation might occur around the 42,000 to 38,500 levels before further upside.
The CNX IT (Nifty IT) index consists of the major IT companies
Here's a list of the top stocks that are generally part of the Nifty IT Index:
Tata Consultancy Services (TCS)
Infosys Ltd.
Wipro Ltd.
HCL Technologies Ltd.
Tech Mahindra Ltd.
L&T Technology Services Ltd.
Mphasis Ltd.
Coforge Ltd.
Persistent Systems Ltd.
LTIMindtree Ltd.
Key Insights:
Cup and Handle Pattern:
The pattern began forming around mid-2022 and completed by 2023.
The breakout from the handle occurred around 38,539.00, which is a critical support level now.
Measured Move and Target:
The chart projects a potential upside target near 51,077.75, based on the height of the cup.
A 48.01% gain from the lowest point of the cup is also marked, giving more context to the potential upside.
The measurement from the cup's bottom to the breakout level shows a 32.48% gain potential from the breakout point.
Price Action:
The index reached a recent high of 43,645.90 before pulling back slightly to 42,089.30.
The pullback might be a healthy consolidation after the strong upward move.
Support Levels:
Key support is identified at 38,539.00, which was the breakout point of the handle.
The chart shows another strong support level at 26,164.20, which was the bottom of the cup, though this level seems far from the current price.
Conclusion:
The Nifty IT Index appears to be in a bullish continuation phase after breaking out of a multi-month cup and handle pattern. While the target of 51,000 seems plausible, a healthy pullback or consolidation might occur around the 42,000 to 38,500 levels before further upside.
The CNX IT (Nifty IT) index consists of the major IT companies
Here's a list of the top stocks that are generally part of the Nifty IT Index:
Tata Consultancy Services (TCS)
Infosys Ltd.
Wipro Ltd.
HCL Technologies Ltd.
Tech Mahindra Ltd.
L&T Technology Services Ltd.
Mphasis Ltd.
Coforge Ltd.
Persistent Systems Ltd.
LTIMindtree Ltd.
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