06 October 2011

IT Index : Coding Correction ?



Can't say anything good about the above chart (CNXITIN - The IT index chart). After a decline which looks to be in 5 wave, there is an upward correction in a rising wedge pattern. I don't see it going higher than 5800. A break below the lower trendline should see this Index reach 5000 in a swift manner with ultimate target being 4000.

Many guys see IT index as a savior in times of Rupee Depreciation. I don't feel that is ever going to help, Dollar   strength is always due to crisis in risk assets and IT stocks of India ARE risky assets.

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