Nifty IT index withstands market fall, TCS hits all-time high

Indian benchmark indices are witnessing their fifth consecutive downtick on Monday as a repercussion of Karnataka assembly election result. Accordingly, the event impacted most of the sectoral indices too, but Nifty IT index. Nifty IT index is seen consolidating for the last 11 days, where the event refrained it from bouncing, despite strengthening US Dollar.

Apart from the PSU Bank which was up by 1 per cent, Nifty IT was the only sectoral index trading in green with 0.6 per cent gains at 11:12 hours. TCS, which holds 27.8 per cent weightage in the index is up by 2 per cent and has hit a new all-time high of Rs. 3,592 on Monday. Mindtree which holds 3.5 per cent weightage is the second top gainer in the index with 1.9 per cent gains.

After hitting 3,560, its prior all-time high level, TCS had consolidated for 3 weeks, forming a kind of Pennant pattern on the weekly time frame and that the stock has given a breakout during Monday's session. Mindtree too breached its Tick Average price of nearly 1,025 with rising volumes and oscillators positive crossover on a daily time frame.

Coming back to the IT index, after hitting all-time high levels at 14,294, the index consolidated for 6 consecutive days and then corrected up to the trendline level at 13,350-13,300. The index is now consolidating just above the trendline level. While the level of 13,625-13,680 followed by 13,800 will act as resistance.