Top three IT stocks to watch out for in this bull market
Subscribe to enjoy similar stories. The Indian stock market is abuzz with optimism thanks to several encouraging factors. The recent victory of the Bharatiya Janata Party (BJP) in Maharashtra has sparked celebrations on Dalal Street, with the Nifty50 surging by more than 350 points on a Monday morning at 24,250.
But it's not just the election results driving the bullish sentiment. The markets, particularly the Nifty50 and broader Nifty500 indices, have bounced back from their 200-day exponential moving averages (200DEMA), signalling that the bull trend is still alive and well. As the markets show signs of a bullish recovery, readers are increasingly seeking opportunities that can offer superior returns.
One such opportunity lies within the Nifty IT Index, which has recently demonstrated a bullish pattern on the chart and shows significant potential for outperformance. The Nifty IT Index has been one of the standout performers recently, and its relative strength compared to the Nifty50 index is an important factor to watch. A key indicator to track this is the NiftyIT/Nifty50 ratio, a chart that highlights the performance of the IT sector against the broader market.
A rising ratio implies that the IT sector outperforms the Nifty50, while a declining ratio indicates the opposite. Recently, the NiftyIT/Nifty50 ratio broke out of a significant multi-year resistance zone, signalling a shift in momentum. After breaking through this resistance, the ratio was retested, and the rally resumed, reinforcing the belief that the IT sector may continue to outperform the broader Nifty50 index in the months ahead.
Read more on livemint.com
