IT STOCKS - Time UP!

NIFTY gave a resounding crash today as it fell almost 3%. World markets too were weak, but it seems the sell off was heavier in India. The current F&O settlement as weel as the coming budget seems to be heavy in the minds of investors and traders - big and small.

in a way this is good - since we are having a 'correction' before the budget, leaving scope for a post budget resumption of the rally. But still we have some time before buying aggressively.

One of the major beneficiaries of the current rally is the IT sector. I have analysed CNXIT some time back. In fact with the current price charts, it seems that even medium to long term investors may want to reduce their IT stock exposure.



The CNXIT WEEKLY chart is showing negative divergence which should in all probabilities be confirmed by end of this week. And the other weekly advanced indicators (not shown here) too are indicating 'reversal'.

Use any corrective upmove in IT stocks to lower any longs. I will not be surprised if the CNXIT heads towards 5100 - 4700 range in coming weeks. . .

Happy profit booking
CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.