EquityPandit’s Outlook for CNX IT for the week (September 21, 2015 – September 25, 2015):
CNX IT index closed the week on positive note gaining more than 2.5%.
As we have mentioned last week that the index is trading around the support zone of 11400 where 100 Daily SMA is positioned. If the index breaks below the levels of 11400 on closing basis, the index can drift to the levels of 11000 where trend-line support for the index is lying. The index manages to hit a low of 11405 during the week and bounce to the levels of 11800.
As we have mentioned last week that the index has formed a Doji pattern in downtrend indicating the exhaustion of selling pressure and the index manages to bounce back this week.
The index has formed a Morning Star pattern in a downtrend on weekly charts. If the index manages to move above the levels of 11800 then the index can move to the levels of 12500.
Support for the index lies in the zone of 11400 to 11600 where short term, 100 & 200 Daily SMA are positioned.
Resistance for the index lies in the zone of 11800 to 12000 where channel resistance for the index is positioned.
Broad range for the index in the coming week is seen from 11300 on downside to 12200 on upside.