The Nifty IT Monthly Chart indicates that the recent decline found support at the long-term rising trendline. Technical analyst notes this as a significant long-term bullish development. Additionally, seasonal data points to November as a good month, and December as the best, making it opportune to accumulate the IT index during recent weakness to ride the upcoming positive seasonal trend.
Kapil Shah, a technical analyst at Emkay Global, recommends accumulating the stock in the Rs 780-765 range with a stop loss of Rs 735 on a closing basis. He expects the stock to rise to Rs 860
The Nifty, which gained almost a percent in the past week, is expected to trade higher, say analyst in view of the macroeconomic factors and technical analysis. The index will remain bullish as long as it remains above 18,950, they say