We strongly believe that Nifty IT index witnessed a capitulation move in the last one week. Stocks fell like there was no tomorrow. While we were a little early to call a bottom, this index went on to make a new low and has rebounded well in the last two days. There are some positive signs on the studies. This could be a bottom. 28500 and 29000 look doable in the days ahead. Higher levels too likely.
Strong support now seen at 27000. Concern only on a close below the same. CMP 27800