Rahul Ghose, Founder and CEO of Octanom Tech and Hedged, expects the IT sector to extend its rally further, as chart patterns suggest that the current uptrend is more than just a relief rally.
"On the monthly timeframe, Nifty IT has formed back-to-back bullish engulfing candles. That is a strong reversal signal after a long stretch of underperformance," he said in an interview with Moneycontrol.
With the IT index showing signs of strength, Ghose believes Coforge is a stock worth accumulating on every pullback. He also sees a similar chart structure in Tech Mahindra and recommends keeping the stock on investors' radar.
"Both are heading into all-time-high territory, where there is no overhead supply. That makes precise targets hard to set, but technically a 20–25 percent upside is possible over the medium term," he said.
Do you expect the rally in the Nifty IT index to extend further from a technical perspective?