IT stocks may deliver smart returns in short term: Rupak De of LKP Securities

economictimes.indiatimes.com:

Nifty IT index delivered a bullish breakout and pushed above a critical moving average, signalling positive trend, says Rupak De, Senior Technical analyst at LKP Securities. The bullish crossover on the momentum indicator RSI further confirms the upward momentum. “Based on these factors, it is recommended to maintain investments in tech stocks for the short term, as they are expected to continue their upward movement in the coming days,” he says.

Edited excerpts:Nifty's overall chart pattern is maintaining a bullish overtone. How big is the resistance at 19,500-mark?The Nifty index's break above the consolidation range of 19300-19500 suggests increasing optimism in the market. The resistance at 19500, which was heavily built by Call writers, has been surpassed on a closing basis.

This breakthrough is expected to lead to a significant rally as the Call writers unwind their positions. The bullish crossover on the momentum indicator RSI reinforces the upward momentum. The Nifty may potentially reach levels around 19700-19720, but it's important to consider the short-term support at 19300.What should be the trading strategy for Nifty Bank traders? Will it continue to underperform?Bank Nifty is facing significant resistance at 45000, hindering its upward movement.

As long as it remains below this level, a clear directional up move is unlikely. Support is established at 44700 on the lower end. The bullish crossover on the momentum indicator RSI suggests positive momentum.