The IT stocks are showing 'strong' resilience in the downtrend. It does not come as a surprise to me, however, raises some important questions about the 'sustenance' part of this resilience. If you have traded the market during the last three days, particularly the in IT scrips, this question will be in your mind as well!
After watching the price action and dedicating myself to the ticker for three days, the immediate conclusion I can come to is some distribution of the stock by some large players has happened on tuesday and wednesday. Apparently, marking up of prices is being done in a particular scrip - Satyam. It is a cinch for anyone one who has traded in this scrip today that there is some mysterious force absorbing all the stock that is offered and occasionally testing and confirming the likely market behaviour if it withdraws itself! you know what i mean ;)
Well, my bold prediction is that this stock is going to be sold off sooner or later no matter if the overall market is negative for the next two days. Then you will witness the real strength of the IT scrips.
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