Weekly Outlook on CNX IT and its main components (July 06,2015 - July 10,2015)

DATE: 04/07/2015

WEEKLY OUTLOOK FOR CNX IT AND

ITS MAIN COMPONENTS

(06/07/2015 - 10/07/2015)

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Jagrut Shah Darpan Shah Sr. Research Analyst Head - Research EquityPandit Financial Services Pvt. Ltd. 305, Trinity Business Centre, L. P. Savani Road, Surat - 395009 Gujarat

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CNX IT index closed the week on negative note losing around 1.5%. As we have been informing that the index is constantly facing resistance around the down-ward sloping trend-line positioned around the levels of 11400 and this week also the index made the high around the levels of 11300 and retraced back. There has been continuous news flow from the IT giants from around the globe about the earnings slowdown which is also affecting the IT index in India and the index is seen under-performing compared to the other indices. On 09/07/2015, the IT giant TCS will come out with quarterly results. We think the results will be make or break for the index. If the company comes out with good results we may see the index breaking out of the resis-tance zone of downward sloping trend-line positioned around the levels of 11300. If the company disappoints on the result front we may see index breaking down from the lev-els of 10900 to 11000 which is acting as strong support for the index in any correction. Broad range for the index in the coming week is seen from 10800 on downside to 11500 on upside.

CNX IT


INFY closed the week on absolutely flat note. The stock has formed a doji pattern on the weekly chart suggesting the indecision among the traders about the direction of the stock. This week the stock is facing stiff resistance around the levels of 1000 to 1010. As seen from the chart the stock is facing stiff resistance in the range of 1010 to 1025 where trend-line and 200 Daily SMA is lying. Support for the stock is seen in the range of 975 levels where upward sloping trend-line is positioned. A break below the levels of 985 the stock can drift to the levels of 970 and 950 where long term trend-line support for the stock is positioned. Broad range for the stock in the coming week is seen between 950 to 970 on downside to 1020 to 1040 on upside.

INFY


TCS closed the week on positive note gaining more than 1%. For the week, it is seen that the stock is moving in the tight range of 2550 to 2610 levels. During the week the stock manages to close above the levels of 2580 where downward slop-ing trend-line is positioned. Multiple support for the stock lies in the range of 2550 to 2575 where short term moving av-erages, 100 Daily SMA and 200 Daily SMA are positioned. Below the levels of 2550 on closing basis we can see stock drifting to the levels of 2500 where channel support for the stock is positioned. Above the levels of 2650 we can see stock moving towards the levels of 2700. The stock may see huge volatility during the week as the company is announcing the quar-terly results on 09/07/2015. The company has already raised red signals about the earnings slowdown. Broad range for the stock in the coming week is seen between 2520 to 2550 on downside to 2650 to 2670 on upside.

TCS


HCL Tech closed the week on positive note gaining more than 3%. On 03/07/2015, the stock manages to close above the levels of 957 where 100 Daily SMA was positioned. If the stock manages to hold the levels of 957 the stock can move to the levels of 1000 where upward sloping trend-line is positioned. Support for the stock is seen in the range of 930 levels where trend-line and short term mov-ing averages are positioned. Broad range for the stock in the coming week is seen between 930 to 940 on downside to 980 to 1000 on upside.

HCL TECH


Wipro closed the week on absolutely flat note with negative bias. As we have suggested last week that the stock has formed a Bearish Harami pattern on Weekly charts in the uptrend suggesting the exhaustion of fresh buying at this levels. Gener-ally after the formation of this pattern we may see stock moving downwards. This week the stock was facing stiff resistance around the levels of 555 to 560 zone. If the stock moves above the levels of 562 we can see stock moving to the levels of 570. If the stock moves below the levels of 550 on closing basis we can see stock moving to the levels of 540 where trend-line and 500 Daily SMA is positioned. Broad range for the stock in the coming week is seen between 530 to 540 on downside to 570 to 580 on upside.

WIPRO


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Weekly Outlook on CNX IT and its main components (July 06,2015 - July 10,2015)

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