Nifty IT & Reversal charts

Nifty IT & its major constituents are the major losers of Dalal street in last 1 year. Last 1 month there was good rally but all these rally are not able to break major FIBO Mark. Some are so weak that they are not able to rally & trading at lower levels of last 1 year.
Generally if we talk about bear market then these bear market can stretch upto 2-3 years easily, With the case of tightening of money by FED,  US IT stocks are in full fledge bear market, can take another 1 year to recover. Indian IT is a bit different from USA, but still we have to go through same phase of USA Stocks. Because of Tightening of money by FED, Slow down is there in USA Tech Stocks & some impact will be there in India IT companies also.
Bear market rally generally fizzle out near .50 – .618 mark of FIBONACCI. Plus if you combine it with Ichimoku cloud then you will get clear picture. I have seen same in USA Stocks like Nvidia, Adobe, Microsoft, Amd & previous bear market history.

INFOSYS

Have 27% weightage in Nifty IT. Recent rally fizzle out at exactly at .50 FIBO Mark Rs 1660, plus Ichimoku cloud  Rs 1680 on Weekly Chart Basis. Both were heavy resistance & result in front of you, Infosys tanked by 100 points & trading at Rs 1570. Now for people who are long term investors you need to wait for Infosys to shoot up above 1730 weekly closing basis then we can aim for ATH ( All Time High).
If It closes below Rs 1420 then expect slide upto Rs 1300 – Rs 1160. ( 2 charts attached below).

TCS

Have 26% weightage in Nifty IT. Again same pattern, and rally fizzle out at .50 FIBO Mark. From .50 FIBO Mark of Rs 3480 it tanked by 190 points to Rs 3290. Don’t be happy with these rally, these are just for short term, ride the rally with trail stop loss because long term breakout can take another 2 quarters.
For long term Investors you need to wait for Closing above Rs 3620 then aim for ATH ( All Time High).
If closes below Rs 3040 weekly basis then expect slide upto Rs 2820 – Rs 2580. ( 2 charts attached below).

HCL Technology

Have 9% Weightage in Nifty IT. It is in category of midcap stocks, which generally rally fast & fall fast compare to large-caps, Recent Rally of 31% fizzle out Exactly at .50 FIBO & IchiMoku cloud & Lead to fall of 11% from Rs 1150 to Rs 1020. Small Small Green candle & Big Red candle always a good case study of bear market rally & fall.
Close above Rs 1200 then aim for ATH ( All Time High), Close below Rs 930 then expect slide upto Rs 830 –  Rs 710. ( 2 Charts Attached below). 

Tech Mahindra

Have 8% Weightage in Nifty IT. Out of top 4 stocks this is weakest stock. Crashed 49% from high of Rs 1838 to Rs 943 after that no proper recovery, Still trading at Rs 1030. Once IT Starts it new leg down then these weak stocks go down first. It is able to maintain position at Rs 1000 because of 200 WMA & AVWAP Support, But these support get weak as per passage of time, A weekly close below 990 then expect slide upto Rs 900 – Rs 810. ( 1 Chart Attached below).

WIPRO

Have 8% Weightage in Nifty IT. A pure bear market stock, no doubt in it. Crashed 50% From high of Rs 740 to Rs 370. Still trading at Rs 394. No recovery at all. Multiple Resistance on upside, All rally will fizzle out for sure. Lower Low – Lower High going on, So don’t expect new high in next 2 years. Lower levels like 360 – 310 – 265 possible in panic situation. In these situation we can take help of AVWAP of previous High & low. 

Above we have covered 80% weightage of Nifty IT. All Top 5 Stocks are weak for short term & for long term they need to close above major FIBO resistance. If US Nasdaq100 Drops below 10500 then it will slide upto 9000 levels & Indian IT Stocks can also go down as per mentioned levels.