Nifty IT

The Nifty index witnessed a minor degree pullback in the form of Wave II after completing a five-wave rise. With the daily momentum indicator now turning around and the Nifty IT index surpassing its previous high, it looks like the index has possibly started Wave III. In the short to medium term, the Nifty IT index can rise higher towards 32675 where Wave III will be equal to Wave I. On the way down, the 20DMA of 28787 and the recent swing low of 28382 will be crucial support levels to watch out for.