Indian technology shares outperformed major Indian benchmarks in October as the Nifty IT rose 17.69%, while the broader Nifty 50 gained modestly and mid- and small-cap indexes fell.
NSE Indices closing data put the Nifty IT at 27,704.80 on Sept. 30 and 32,606.90 on Friday, Oct. 30. Across the same period, the Nifty 50 gained 1.91%, while the Nifty Midcap 150 fell 3.75% and the Nifty Smallcap 100 dropped 4.06%. NSE Indices describes the Nifty IT as comprising 10 companies listed on the National Stock Exchange of India.
Business Standard reported that October’s 17.69% rise was the index’s strongest monthly gain since July 2020.
The rally did not extend to most stocks in the wider market, Business Standard reported. In October, 22 of the Nifty 50’s 50 constituents rose, while 406 of 2,274 stocks listed on both Sept. 30 and Oct. 30 finished higher.
In an interview reported by The Economic Times, LKP Securities Technical Analyst Vatsal Bhuva named 35,000 as a possible next level for the Nifty IT. He cited a bullish monthly relative strength index crossover, a return above short-, medium- and long-term moving averages, and support near a 38.2% Fibonacci retracement. Bhuva said the techni...