EquityPandit’s Outlook for CNX IT for week (August 03, 2015 – August 07, 2015):
CNX IT index closed the week on positive note gaining more than 1%.
As we have mentioned last week that the index has to sustain above the levels of 11600 to breakout of the channel pattern or else the index can fall to the levels of 11000, the index hit a low of 11300 during the week. The index also fill the gap which was created on the 21/07/2015 when the index opened gap up on back of INFY results.
The index closed the week above the strong resistance zone of 11600 where 100 Daily SMA and 200 Daily SMA are positioned.
The index has formed a Bullish engulfing pattern on monthly charts. If the index manages to close above the levels of 11800 the index will break-out of the 3 months consolidation.
If the index manages to close above the levels of 11800 the index can move to the levels of 12800 to 13000 in 1 to 2 months time frame.
Support for the index lies around the levels of 11300 where short term moving averages and trend-line support are lying.
Broad range for the index in the coming week is seen from 11200 on downside to 12000 on upside.