De-dollarisation - I don't think soI have just tried to count waves here in USDINR pair for period of around last one year
(almost).
Well it doesnt look atall that dollar is weakning in near future.
In fact it may remain strong for next couple of year (approx).
Huge huge consolidation almost at same place for last 1 year and now
its almost completed.
Should start heading north very soon and with some good momentum.
Lets see how it goes.
Stay alert
All the best.,
Dedollarization
Nifty IT= THE SECTOR TO AVOID FOR INVESTORS!⚠️FIRST THE TECHNICAL VIEW
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✅
This is a SECTOR SPECIFIC View for INVESTORS!⚠️