Nifty IT outperforms all the sectoral indices today, 1 August 2023

Today, the broader indices NSE Nifty50 and S&P BSE Sensex faced some hurdles, concluding the session in the red. Checking Nifty50, it opened at 19,784, almost flat from the previous day’s closing level of 19,953.80. The index hit intraday highs and lows of 19,995.60 and 19,704.60, respectively, finally concluding the day at 19,733.55 down by 20 points. Meanwhile, Sensex ended the day at 66,459.31 on Tuesday, also in the red.

Today, we will focus on the Nifty IT index. The reason for choosing this index is that, among all the sectoral indices, Nifty IT is the top gainer. NSE IT index started the day at 29,998.15, reached an intraday high of 30,348.75, and finally concluded the trading session at 30,288.65, representing a 1.2% increase compared to the previous day’s closing level of 29,298.46.

Observing the above chart, it is evident that it is still trading in a range. This range has an upper band of around 31,600 levels and a lower band of around 26,200, resulting in a range of approximately 5400 points. The index has been consolidating within this range since May 2022, which is around 456 days.

During the last month, July, it attempted to breach the range from the upper side. However, due to weak guidance by Infosys management, the index dropped more than 1600 points from the upper consolidation range.

In the last two days, including today, the index managed to close the session in the green, with today’s close at 30,288.65, marking a gain of 360 points.

Today’s top five gainers:

 Top performing stocks:

 If we compare the return of the IT index with the stocks mentioned above, the Index has generated a return of 2.45% in the last one month. Out of the ten stocks, five managed to beat the returns of the Index, and Infosys somehow managed to generate a return more or less the same as the index. The remaining four shares have generated negative returns during the same period, namely Persistent System, Tech Mahindra, HCL Technologies, and LTI Mindtree. Investors aspiring to experience the ride must remain vigilant and keep an eye on it.

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.