Trading in IT Index?

sh50

Active Member
#1
I have come across several Technical people recommending trading in Nifty futures. Considering India's strength in IT and the recent results declared by infosys, Wipro and TCS, why doesn't anybody recommend IT Index or CNx IT or whatever it is called?
 
Last edited:

Traderji

Super Moderator
#2
The CNX IT index is a proxy for the IT sector in India. So anybody wanting to take a call on the IT industry in India should be trading the CNX IT Index.

Volumes while not so good in earlier has improved considerably lately.
 
#3
I think the IT index is more volatile than the NIFTY index as it is focussed on just one sector whereas the latter is more broadbased.To that extent it is more likely to give whipsaws if you attempt longer term position trading but would be more beneficial if you were to daytrade.NIFTY gives a perception of smooth and slow movement and therefore less risky to trade.
 
#4
kannamthanam said:
I think the IT index is more volatile than the NIFTY index as it is focussed on just one sector whereas the latter is more broadbased.To that extent it is more likely to give whipsaws if you attempt longer term position trading but would be more beneficial if you were to daytrade.NIFTY gives a perception of smooth and slow movement and therefore less risky to trade.
Rightly said!

I have switched to trading the NIfty and am very happy. Lately I am paying a lot more attention to the CNX IT index. Infact I went long a couple of days back and it has worked out well.
 
B

bhavana

Guest
#5
Dear sh50,
I want to know weightages given to IT scripts to derive CNX IT.
Then it wii be convinient for me to trade CNX IT.



Waiting for your valuable reply.
 

sh50

Active Member
#6
" Aapki bhavnaon ko thes nahin pahuchana chahta, bhavnaji" but the fact is that I don't trade indices. I was just curious to know why it was given the step brotherly treatment vis-a-vis the nifty.

Perhaps traderji or some other senior member will reply or you will probably get your answer at www.nseindia.com
 
#7
composition of CNX IT

sr Symbol ----- Weightages (%)
1 CMC -------- 0.45
2 GTL -------- 0.35
3 HCL-INSYS ---1.19
4 HCLTECH --- 4.8
5 HEXAWARE -- 0.78
6 HTMT ------- 0.54
7 HUGHESSOFT- 0.79
8 I-FLEX ------- 2.08
9 IGS ---------- 0.35
10 INFOSYSTCH-- 26.36
11 MASTEK ------- 0.23
12 MOSERBAER------ 1.16
13 MPHASISBFL------ 0.82
14 PATNI -------- 2.04
15 POLARIS ------- 0.56
16 ROLTA ----------- 0.24
17 SATYAMCOMP---- 5.62
18 TATAELXSI ----- 0.25
19 TCS ------------- 29.25
20 WIPRO -------- 22.15

---------------------------------
------------------ 100.00
--------------------------------
hcl tech,infosys,tcs,wipro,satyam---contributes 88.18%
 

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