Stellar weekly start: Nifty IT index surges 2% and closed above 32,000 level after 500 days

The broader market has demonstrated significant strength today, with broader indices closing in the green. The Nifty50 opened the day at 19,525 and concluded at 19,529, marking a 0.48% increase or 93.50 points from the previous day’s closing level of 19,435. In contrast, the BSE Sensex closed at 65,628, up 241 points from the previous closing level.

Today, the Nifty IT index emerged as the third biggest gainer among all sectoral indices, following the Nifty PSU Bank Index and the Nifty Metal Index. The IT index opened at 31,553, reaching intraday highs and lows of 32,198 and 31,455, before closing the session at 32,164, representing a significant 2.06% increase, equivalent to a remarkable 650-point surge.

Historical data reveals that the index surged by more than 2% in a single day previously, on July 14, 2023, when it witnessed an impressive 4.45% surge in a single day.

Furthermore, the index has closed above the significant level of 32,000 after approximately 498 days. As we are all aware, IT stocks were underperforming, and the index traded within a range, with 31,600 as the upper range and 26,200 as the lower range. The index entered this range in May 2022 and remained within it.

In February 2023, there was an attempt to break out of the range, but it eventually dropped to the lower end. In the month of July 2023, it made another attempt to breach the range and initiate a breakout, but it subsequently fell and this time it found support near the 29,300 levels on July 28.

Today, not only has the index experienced a breakout, but it has also closed above significant levels of 32,000.

Let’s observe the stocks that contributed to the index rally today:

Company Name CMP Rs % Change
Wipro 434.45 4.35
Persistent Systems 5,769.00 4.07
HCL Technologies 1,232.00 3.90
Mphasis 2,499.00 2.70
Tech Mahindra 1,256.05 2.28
Infosys 1,468.50 1.71
L&T Technology Services 4,522.00 1.60
TCS 3,418.50 1.16
LTIMindtree 5,360.00 1.07
Coforge 5,476.00 0.44

Below is the chart presentation of the IT index on the weekly time frame:
Screenshot 2023-09-04 171942
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.