BSE IT index

A while back I noted that tech stocks would top out as wave 5 ended, what followed was a few more new highs that have resulted in wave 5 forming an ending diagonal. Same with Infosys that also extended its ending pattern with a throw-over. So now I put a high probability that the up move in the tech sector is almost over. The falling dollar [yes it is falling again], is unlikely to help. USDINR may remain under downward pressure due to the dollar. 13818 is the 20dma and immediate support for the BSE IT index. A break below it would break the lower line of the wedge and be followed by a trend reversal for the entire sector, specifically the highly volatile Midcap IT names.

it index 070718

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