IT NSE:CNXIT has been a strong sector which hardly corrected when Nifty was falling since Karnataka election results.
However, today’s candle is a Bearish one with a long upper shadow.
Also, it faced stiff resistance around 61.8% retracement of previous fall from ~ 14300 levels.
I also observed the USD/INR chart and feel that Dollar has topped out against the Rupee for short term at least.
All these factors indicate that a large correction in IT may be due taking it below 13000 levels.
Took short positions on some IT stocks like TCS, Infosys, KPIT today.
Disclaimer: Views expressed here are my own, and should not be interpreted as an Investment Advice. Please consult your Financial Advisor for investments.