IT Sector Analysis K Karthik Raja Rupeedesk Share Market Training - 22.02.2025
IT Sector Analysis K Karthik Raja Rupeedesk Share Market Training - 22.02.2025
IT Sector Analysis K Karthik Raja Rupeedesk Share Market Training - 22.02.2025
IT Sector Analysis - 22.02.2025
By K Karthik Raja
Factors Affecting & Reasons:
1. Global Tech Trends – Nasdaq performance, AI adoption, and IT spending trends impact Indian IT stocks.
2. Rupee Movement – A weaker INR benefits IT companies due to USD revenue exposure.
3. Earnings Reports – Strong earnings can reverse the bearish trend.
4. Geopolitical & Regulatory Factors – U.S. visa policies and global economic conditions affect sentiment.
Key Watch:
- Support Levels: 40,500 (200-day MA), 38,000 (next major support)
- Resistance Levels: 43,000 (50-day MA), 42,250 (historical high)
- Indicators:
- RSI at 34.23 – Near oversold, potential bounce.
- MACD – Bearish crossover, signaling downward pressure.
- CCI at -165 – Strong downward momentum.
Volume Analysis:
- 26.63M volume recorded – High selling pressure.
- Declining volume on up-moves – Weak buying interest.
Dow Theory Chart Analysis:
- Primary Trend: Long-term uptrend still intact but showing weakness.
- Secondary Trend: Current pullback is a corrective phase in the larger trend.
- Minor Trends: Short-term bearish as price trades below key moving averages.
- Higher Highs & Higher Lows?
- The recent lower high and lower low signal a potential trend reversal if price stays below 40,500.
- Confirmation needed: A strong breakout above 42,500 can revalidate the uptrend.
Chart Observations:
- Moving Averages: Price trading below 50-day and 150-day MA → Short-term bearish
- Trendline Break: A breakdown from previous support indicates weakness.
- Parabolic SAR: Bearish as SAR dots are above price action.
Stocks to Watch:
- Infosys (INFY) – Near key support; potential bounce.
- TCS – Strong fundamentals, but correction phase persists.
- HCL Tech – RSI nearing oversold; watch for a rebound.
- Wipro – Weak structure; needs confirmation before entry.
Market Insights:
Short-Term View (Next 1-3 months)
- Oversold conditions suggest a possible short-term bounce.
- Resistance at 42,250–43,000 is crucial for a trend reversal.
- Volatility likely due to global uncertainty in IT spending.
Long-Term View (6 months - 1 year)
- Holding 40,500 support is key for sustained growth.
- AI & digital transformation trends to drive IT demand.
- If price reclaims 43,000, expect new highs towards 45,000+.
Disclaimer:
This analysis is for educational and informational purposes only and should not be considered as financial advice. Market conditions can change rapidly, and past performance is not indicative of future results. Please conduct your own research or consult with a professional before making any investment decisions.
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