Nifty IT index trades up against markets, Infy up ahead of results

Indian benchmark indices are trading flat with most sectoral indices trading in red and Nifty Financial service index trading flat. It's only the IT sector that is trading marginally up by 0.5 per cent and has resisted correction in the benchmark indices. Gains of 1.6 per cent plus in Infy and Wipro, with Infibeam as top gainer at 1.9 per cent gains have kept the IT index going upwards in an otherwise subdued trading day.

Infosys has surged ahead of its scheduled Q1FY19 earnings release after market hours on Friday. Analysts are expecting high single digit growth in bottom line with nearly 0.5 per cent marginal growth in sequential terms. After hitting an all-time high at Rs. 1,358 per share on July 3, and tumbled up to 1,268 levels for profit booking, but closing above 1,282 levels which is 61.8 per cent retracement of the prior upward rally from 1,236 to all-time high. The stock has bounced back and heading northwards yet again. Going forward, we hold 1,340, which is followed by 1,325 as a major resistances above which the stock holds better potential to make new all-time high.

Coming back to the index, Nifty IT hit its peak level at 14,654 and witnessed some profit booking in intraday trade. However, good volumes and oscillators quoting above 60 suggest some more momentum in the index.