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kugan_vel
Jan 24, 2022 5:31 AM

Bearishness to continue! Short

Nifty IT IndexNSE

Description

IT index is very bearish and has broken many critical levels
Broken 20MA and 50MA in Day chart levels last week
It broke 20MA level in Weekly chart today - But still have to wait and see if the close of the candle is well below the 20MA level. Fed meeting results will have a major influence.

Support levels:
1. 34500 - Support level + Trendline support
2. 32900 - 200MA level in Day chart + Floor of the channel
3. 31000 - 50MA level in Weekly chart + Fibonacci level
4. 29250 - Strong support level

Trade active

First target reached.
Since Mar 2020 fall, IT didnt see the regular 38% correction. It is trading in a 2Y uptrend channel. And currently at a very strong support level. There are multiple support taken at this level in the past 5 months. But today, the support level is also the floor of the channel which is a very crucial point. Only a strong news can make a move from here, upside or downside.
Comments
kugan_vel
34500 was hit within few hours. Since NASDAQ is again down by close to 5%, big fall can be again seen tomorrow breaking 2 years trendline to reach other support levels downside.
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