In the last 3-4 months NIFTY IT index is a significant underperfomer with respect to nifty. We also had a overvalued rating in NIFTY IT due to the nature of open gaps in the index.
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NIFTY IT is currently in the consolidation phase between 10750-11800. RRG Charts suggests short term out-performance could continue for some time as NIFTY IT sector is currently falling under the leading quadrant. However momentum is falling down and preferred to short at rallys especially during the RRG chart from leading to weakening quadrant transition phase.
And the current consolidation phase indicates that the trend is tired and sooner or later it would correct towards 9254 in the medium term. And we expect NIFTY IT index to deeply underperform NIFTY 50.
