EquityPandit’s Outlook for CNX IT for week (July 20, 2015 – July 24, 2015):

CNX IT:

CNX IT index closed the week on positive note gaining more than 4%.

As we have mentioned last week that the index has broken down from the large Head & Shoulder pattern for which the targets can be in the range of 9000 levels. On 13/07/2015 the index managed to close above the levels of 10900 i.e. neckline of Head & Shoulder pattern and the index virtually negate the major breakdown pattern.

During the week the index also managed to close above the downward sloping trend-line positioned around the levels of 11100.

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.

Support for the index lies around the levels of 10900 where trend-line is positioned.

Resistance for the index lies in the range of 11500 where 200 Daily SMA is lying.

Broad range for the index in the coming week is seen from 10900 on downside to 11500 on upside.