EquityPandit’s Outlook for CNX IT for week (July 27, 2015 – July 31, 2015):
CNX IT index closed the week on positive note gaining around 2%.
As we have mentioned that if the index manages to close above the levels of 11200 the index will breakout of the triangle pattern and targets for the same can be in the range of 12000 in 3 to 4 months time frame. The index hit a high of 11798 and retraced back to the levels of 11450.
As it is seen from the chart above that the index has hit the high at the upper end of the channel pattern.
The index has to sustain over the levels of 11600 to breakout of the channel pattern or else the index can fall to the levels of 11000. The index has a strong resistance in the zone of 11600 where 100 Daily SMA and 200 Daily SMA is lying.
Support for the index lies around the levels of 11300 where short term moving averages are lying.
Resistance for the index lies in the range of 11600 to 11800 where 100 & 200 Daily SMA is lying.
Broad range for the index in the coming week is seen from 11000 on downside to 11800 on upside.