Nifty IT forms double bottom, recovery on the cards

Going forward, the crucial resistance is seen around the psychological 30000 mark which also coincides with the rising trendline resistance on the weekly chart. On the downside, 29000 is crucial support area.

Mar 17, 2019 03:03 IST India Infoline News Service

IT Stocks Up
Markets extended winning streak to the fifth consecutive trading session as Nifty closed at Calendar year highs. After breaking out from a rising channel pattern on the daily chart, Nifty has zoomed and is now approaching its important rising trendline resistance of 11500 levels.

The Bank Nifty, on the other hand, spearheaded the rally and continues to show immense strength. Going forward, the crucial resistance is seen around the psychological 30000 mark which also coincides with the rising trendline resistance on the weekly chart. On the downside, 29000 is crucial support area.

The Nifty IT index staged a smart come back towards the fag end of the week. The index has formed a double bottom formation on the daily chart and also found support around the 50-DEMA of 15380 levels. The smaller time frame chart analysis indicates that Nifty IT has broken out from a falling channel pattern and is set to recover in the coming week.

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