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NIFTYIT/NIFTY at the Top of Rectangle

NIFTYIT/ NIFTY ratio chart has been trading in a range for the last 9 months since Sep'20, as shown in the rectangle pattern. The chart is breaching the top trend line of the pattern with momentum.
RSI , the momentum indicator , never reached oversold conditions at the two times the ratio touched the bottom of the rectangle , indicating strength. The RSI is also well above 50 and in bullish zone.
Based on this ratio chart, we can expect NIFTY IT to outshine the NIFTY index in the coming weeks if a breakout happens successfully. We will be monitoring the price action and keep this segment updated as and when we see a successful breakout or a fake out/breakdown.

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