Attached: Nifty IT Index Weekly Chart as of 13th April 2023
In the Chart above, I have mapped out the Potential Elliot Wave Count to play out over the coming Months: - Price has fallen in 3 Waves which is our Larger A Wave - Then Price did a Corrective bounce in an ABCDE structure making up our Larger B Wave - And now the Larger C Wave Down in the form of an Impulse is about to start/ has already started!
I have 2 Downside Targets🎯 based on the Elliot Wave Count:
T1= 23400 to 22700 (which is C = 0.618 of A) T2= 18350 to 17750 (which is C = A)
This implies an approx. 19% decline📉 for Target 1 and a 36% decline📉 for Target 2, from Current Market Price😨
NOW, THE FUNDAMENTAL VIEW
Regarding IT Stocks from an Investor's Stand Point, it is going to be the DIRTY FISH💩🐟 of the Pond and can potentially Spoil the Whole Pond as well
Irrespective of whether it is a Bull Market or a Bear Market for Broad Market Stocks. IT Index is set for New Lows and Infosys is Leading it on the Downside
As an Analogy for the Indian Market: Remember how Auto Sector was in 2018? TOP out how Pharma was in 2015? TOP out
IT is the same now in a Bear Market🐻🩸. Fundamental Reasons: - US Recession - Wage Inflation (IT Co. main cost is Employees), Lay Offs, Etc. - De Dollarization (aka USD Crash hurts Dollar Revenue of these IT Companies)
I suggest if you have any Investments in IT Stocks Sell Them Off✅ You will get better Value in Other Sectors✅
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