EquityPandit’s Outlook for CNX IT for week (July 13, 2015 – July 17, 2015):
CNX IT index closed the week on negative note losing around 3.5%.
There has been continuous news flow from the IT giants from around the globe about the earnings slowdown which is also affecting the IT index in India and the index is seen underperforming compared to the other indices.
IT giant TCS came out with subdue set of results which broke the index down.
As we have suggested if the results of the company disappoints we may see index breaking down from the levels of 10900 to 11000 which was acting as strong support for the index and the index broke down from that levels and hit the levels of 10750.
As seen from the charts the index has broken down from the large Head & Shoulder pattern for which the targets can be in the range of 9000 levels.
Support for the index lies around the levels of 10500 where long-term trend-line is positioned.
The index has to sustain above the levels of 11000 for couple of days to negate this pattern.
Broad range for the index in the coming week is seen from 10500 on downside to 11200 on upside.