Nifty IT (Previously CNX IT) hit is bear market low at 1992.8 on 6th March 2009 since then its journey towards the upside move had generated more than 5.5x returns in the last 6 years. But in the way of its bullish journey it left so many gaps open and remain unfaded. Total 11 gaps are yet to be faded as shown in the above charts. Gap reflects the emotions from the market participants.
So many gaps left open in Nifty IT indicates that too many emotional buyers willing to buy and hold stocks in this segment at higher price and high probability that Nifty IT(CNX IT) is highly overvalued. May not be a long term bet at this point.
Note : NIFTY IT peaked on 6th Mar 2015 and made a high of 12908