NIFTY - Two "I"'s crossing the T's

The stage was set, market open huge gap down. Infy the one I, hits the bear's eye tanks more than 10% brings down at one point of time more than 6% IT Index down. Index hits near the 200 DMA 17570 as if that is the gravitational pull, another I from the index rises, this time ITC. Tale of Two I's crossing the T's in the end. Might of IT keeps the tone to the RED. Bandwagon of downgrades of IT starts, cut and paste world. Better to pose the question to ChatGpt or the TruthGpt for crossing the i from the AI. Clearly the down move was in excess in Large IT, but then it would take some time for markets to absorb before the mean reversion funds come to the rescue. It is all about sectoral rotation, there are no all-weather caps anymore. Cues from SGX is tad negative that can be to start. Will we have another day of deeper fall, looks not the case. The supply zone held the upside probe, while the demand zone both 200 DMA and Long term VWAP held the downside support. Positive news coming out of China printing higher GDP and higher Retails sales will sure energise the financial markets in the short term, while bringing back inflation to run higher longer theme back. While bulls and bear's fight, we might be staring at a Stagflation. There are not many back off the cover empirical evidence to fall back. For the day NIFTY strained below 17750 support above 17650 looks apt, with PSU and FMCG acting as support.