Home Options Trading Bad Days Ahead For IT Stocks ??

Bad Days Ahead For IT Stocks ??

May 05, 2022 comments off

Hello Again !! 


Today We will be Checking About IT Stocks and The IT Index, Which We expect to be the Market Leader Since Long! Will The Magic Continue or the era is Over ? Let’s Find Out !!

INFOSYS LTD.


This is NIFTY IT Index Chart on Monthly Scale, Most of the Things are Written on The Chart, Will Explain them again… 

  • The IT Index was a Market Leader Since Long. 
  • IT Stocks have More weight in the Broader Index also. 
  • We Can See Continuous uptrend with Occasional Pullbacks. 
  • On Top We see a Long Term Rising Trend Line Resistance. 
  • The Rising Trendline Resistance was Broken and Price Moved Higher in 2021
  • Recently The Index Formed weak Structure at Top 
  • Multiple Bearish Candles at Top 
  • We Also See 52 Period Moving Average Provides Support to price. 
  • Price far away From Trendline and Moving Average, Needs Retesting. 


Let’s have a Closer Look … 

Nifty IT Index


This is Again a Monthly Chart, Zoomed into Current Area for More Detailed understanding of the Price Action. 

  • Multiple Doji Formations When Price Reaches Top 
  • Bearish Engulfing Formation after Multiple Doji Candles.
  • Previous Month Candle was a Strong Bearish Candle. Breaking Multiple Lows
  • Bearish Structure is Confirmed When The Monthly Candle Breaks Lows
  • Current Month Candle Again Breaks Recent Lows. 
  • Price Action Suggest Weakness in Index. 
  • If the Trendline Support Breaks, The Index May Test the Last Consolidation top at 16786 in Coming Months. 


Let’s See One Important Stock Chart : 

Options Trading

The Stock is INFOSYS LTD. 

The Chart is Monthly Chart to Start With. 

  • We May See Strong Uptrend With Occasional Pullbacks. 
  • A Long term Trendline Resistance was in Place Since 2000
  • The Stock has Take Support on 100 Period Simple Moving Average since 2003
  • Price Consistently Moves to Touch the Support and Resistance. 
  • in 2021 Stock breakout From Trendline Resistance and Moved in Free zone. 
  • Now After a Good Move, Stock is Trying for a Pullback towards the Supports. 
  • Stock Trading Far away from Trendline Support and Moving Average. 
  • Stock Planning To Test the Trendline as well as Moving Average. 
  • Short Term Top is in Place and Bearish Candlesticks are being Formed.

Let’s See More details : 

We Can

This is again a Monthly Chart. 

  • We May See a Bearish pin Bar Formation
  • Followed by Bearish Engulfing Candlestick formation
  • The Again an attempt to break High but unsuccessful. 
  • Followed By again a Strong Bearish Candle breaking Important Lows. 
  • Current Month Candle Again Breaks Lows. 
  • Stock Looks weak with the Short term Top in Place. 

Let’s Look at a Weekly Chart : 

INFOSYS LTD.

This is a Weekly Chart and We can See How it Plays Out to Form a Short Term Top and Starts Weakness in the Stock. 

  • First Support was 1665 Cash levels, Broken Decisively. 
  • Short Term Resistance Now at 1600 Levels. 
  • Stock Broken Recent Lows Too 
  • Next Short Term Support at 1415 (100 Period Simple Moving Average) 
  • Followed By Short Term Support at 1385. 
  • If The Short Term Support is Broken, We Might See Lower Levels of 1155 again. 
  • Obviously it will not be One way Slide, We Might See some Ups and Downs during the Price flow. 
  • We might see attempts to hunt Stoplosses of Traders. 
  • The Trade is Given Below. 

NIFTY IT INDEX : 
CMP : 30794 
Resistance : 33249 – 34660
Supports : 26960 – 19660

INFOSYS LTD. 
Futures Trade : 
May Future
Sell @ 1540 -1550 
Stoploss : 1600 
Targets : 1420 – 1380 

Lot Size : 300 
Risk : 15000 
Reward : 36000 – 48000

Options Trade :

INFOSYS 1540 PUT (May)
Buy @ 40
Stoploss : 20 
Targets : 100 – 150

Lot Size : 300 
Investment : 12000
Risk : 6000 
Reward : 18000 – 33000 

We May Go For Option Writing, By Writing Call Options in Infosys, The Post Regarding The Options Writing of Infosys Calls is Posted below this Post. Just Check the Post and Trade Accordingly. 


New Trade in Options Writing is Here 

>>> Click Here to Check <<<


The Analyst is a Technical Analyst, Global Market Expert and a Certified Investment Adviser and Retirement Adviser, Having Experience of 15+ years in Indian as well as International Markets. The Opinion of the Adviser is Purely based on the Analysis of charts and Nothing else. 

Do Consult your Financial Adviser if you want to Trade. 

Follow Risk management and Trade carefully. 


Communication Details : 

WhatsApp : (+91) 8275298208 | email : paidsignals@gmail.com 


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Original source: https://optionsmagician.blogspot.com/2022/05/bad-days-ahead-for-it-stocks.html

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