IT sector continues upmove, index gives record closure

While the entire market was fighting volatility, IT sector managed to bounce back and maintain upsurge after falling for the first half an hour of the trading session on Friday. Nifty IT index was the top sectoral gainer after metals with 0.7 per cent gains.

Nifty IT index gave a record closure at 13,260 levels after January 24 close of 13,250 levels. On Friday, all stocks barring HCL Tech closed in green. HCL Tech closed 1.86 per cent down. Tech Mahindra and Wipro which hold 12.9 and 10.3 per cent, respectively were the top gainers with 2.5 per cent plus gains each.

It was the fourth consecutive uptick for the Nifty IT index, where it broke its two major resistances at 13,012 and 13,168 on closing basis and 13,328 on intraday basis. The Index seems to be heading towards its all-time high at 13,554 levels. After taking major support at 12,424 which was near to its 50 days EMA level, the stock consolidated for a while and bounced back to head to record levels. With this, the index holds a potential to surge further up to 700 to 950 points in the first place.

Further, on the weekly time frame, the index also gave a Pennant pattern breakout at 12,740 and thereby the index is expected to give 1,400 to 2,500 in the medium term. As it is experts predict a good quarter and a recovery in FY18 for the entire sector.