stock market
There was a time in the stock market when shares of IT companies were the first choice of investors. But, in the last few months, these shares have given a tough test to the common investors. Continuously falling prices and slowness of the market have shaken people’s confidence. However, data from market experts is now presenting a completely new picture. The Nifty IT index has reached its 18-year-old historical support level, which can fill the pockets of long-term investors. History is witness that whenever Nifty IT has slipped to this particular level, after that a spectacular and long recovery has been seen in the market. In such a situation, the eyes of investors are now directly focused on big companies like Infosys, Coforge and Persistent Systems.
The real reason for the huge fall in tech stocks
Since December 2024, the performance of the technology sector has been very disappointing compared to the domestic stock market. Many big global reasons have been responsible behind this decline. The sudden decline in spending on IT services in America has broken the back of this sector. Along with this, the sound of recession in foreign markets, sharp fluctuations in the value of dollar and slowdown in demand for global outsourcing made investors stay away from these shares. Due to foreign uncertainty, a pressure environment was created in the market, which pushed the Nifty IT index towards lower levels.
This support level is strengthening the market
The chart figures are telling a very interesting story for investors at this time. The important support zone in which the Nifty IT index stands today has saved the market from falling in every difficult phase since 2009. Be it the Eurozone crisis, the unstable Brexit phase, the severe crash of the Corona epidemic or the huge decline in global tech companies, this support has always acted as a strong shield.
When important technical parameters like long-term trendline and 100 EMA meet at one place, it is considered a sure sign of a comeback in the market. According to experts, now the panic selling in these shares seems to be ending. In technical language it is called ‘Bearish Exhaustion’. This simply means that now people selling shares are tired, which is a great opportunity for big investors to start buying gradually.
Profit opportunity hidden in big companies
At this important juncture of the market, the performance of certain stocks can prove to be a game-changer for investors. Infosys stock is trading very close to its strongest long-term support. Technical charts are indicating that big institutional investors can start their buying again from here. If this happens, Infosys can make a great comeback.
On the other hand, Coforge shares have always proved to be a big wealth creator for investors. Despite the recent weakness, the long trend of this company still remains quite strong. This stock is at the lower level of its ‘Rising Channel’, from where there is every hope of a rise. Apart from this, a ‘Bullish Belt Hold’ pattern is seen forming on the charts of Persistent Systems, which is considered a very positive buying signal in the market. If Nifty IT remains on its current support, then these stocks can emerge as the biggest players in the coming rise.
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Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
