A brief of what to expect in Nifty IT stocks in the coming days. Will start by analysing the NiftyIT index and then look at individual stocks that make up the index. Would be listing the stocks in their decreasing order of “Relative Momentum“.
Note: click on chart for larger view
NiftyIT index
The IT index is still in a larger Stage-3 structure. Referring to the Relative Momentum (lower half of chart), we seem to have run out of space in the wedge, so this marks the end of the consolidation phase.
There were signs of a breakout on 15thDec’23 too, but IT Index fell silent for 24 days after that. I would consider the breakout valid only if Relative Momentum crosses & sustains above 0.05 line. Also, being a pullback trader, would wait for a minor consolidation & accumulation to enter IT stocks. This process is largely taken care by InvestIn10’s Swing Screener.
NiftyIT stocks in decreasing order of Relative Momentum
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