CNX IT: Significant resistance between 12,800 and 12,900 levels.

CNX IT (11,575)

Since bottoming out at the April 2013 low of 5,960, the CNX IT index has been on a long-term uptrend. Nevertheless, the index reversed direction triggered by negative divergence after recording a new high at 12,908 in March 2015.

The index has been on a medium-term downtrend since then. But the presence of significant support zone between 10,900 and 11,000 provided base for the index in early May.

The medium-term trend will remain down as long as the index trades below the key resistance level of 11,900. But even before this level, the index faces an immediate resistance at 11,700 levels.

Strong rally beyond 11,900 will alter the downtrend and take the index northwards to 12,200 and then to 12,450 in the medium term. After this level, the index has significant resistance between 12,800 and 12,900 levels.

On the other hand, any declines can find support at 11,360 and then in the zone between 10,900 and 11,000. A conclusive breach of this support zone will reinforce the bearish momentum and drag the index down to 10,600 and 10,400. Further decisive fall below 10,400 will pull the index to 9,800 and then to 9,400 in the coming months.