IT sector can see some buying interest, prices are structurally looking bullish : Aadya Trading & Investments

Mr. Abnish Kumar Sudhanshu, Technical Analyst, Aadya Trading & Investments for your consideration:

Market remained under pressure throughout the entire week and declined for five straight sessions starting from Monday to Friday. Nifty lost 355 points during the week which is the third largest weekly decline this year after losing 509 and 395 points earlier in the month of January this year. Benchmark Nifty has breached its 20 and 50 DMA convincingly this week and also breached its 61.8% retracement provided by the levels 9700 of a recent upside leg from 9448 to an all time high of 10137. At the present situation 9700 will be providing very strong support on weekly closing basis below which one can expect bears to continue dragging market further.

On Friday markets opened with gap down and remained under pressure throughout the entire session. As the market failed to close below mentioned levels, we might expect some upside in the coming week. Since global geopolitical tensions are rising and with that we are seeing huge unwinding of long positions so that is adding more pressure to sentiments. We will also be looking at broader range which incase breached then we may see more momentum direction. In coming weeks, IT sector can see some buying interest given the prices are structurally looking bullish.

Source : Equity Bulls

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