EquityPandit’s Outlook for CNX IT for the week (September 28, 2015 – October 02, 2015):
CNX IT index closed the week on positive note gaining around 2%.
As we have mentioned last week that 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. During the week the index manages to hit a high of 11971 and close the week at virtually the highest levels of the week.
If the index manages to close above the levels of 11800 on monthly basis, then the index will break-out of the 4 months consolidation.
Support for the index lies in the zone of 11400 to 11600 where 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. If the index manages to close above the levels of 12000 then the index can move to the levels of 12300 to 12500.
Broad range for the index in the coming week is seen from 11600 on downside to 12300 on upside.