Nifty IT might be in Distribution zone,wait for box breakout.
IT index within a year doubled from march 20 fall without any meaningful correction.
As wee can see big red candles ( marked with white arrows ) absorbing up moves in short time, i.e time required for up move is more than time required for down move.
To put in simple terms these few bid red candles absorb more green candles. After such move sector rotation is also expected.
There was a buyer trap also.
RSI divergence on weekly charts also visible now.
These observations make my view sideways to down side or limited upside
But direction will only be confirmed on box breakout, hence putting NEUTRAL view
As wee can see big red candles ( marked with white arrows ) absorbing up moves in short time, i.e time required for up move is more than time required for down move.
To put in simple terms these few bid red candles absorb more green candles. After such move sector rotation is also expected.
There was a buyer trap also.
RSI divergence on weekly charts also visible now.
These observations make my view sideways to down side or limited upside
But direction will only be confirmed on box breakout, hence putting NEUTRAL view