Aetram Research India - Nifty IT - Weekly Sector Outlook
Aetram Research India - Nifty IT - Weekly Sector Outlook
Nifty IT Bulls Regain Control Above 31,000; Strength Above 31,350 May Extend Gains While 31,000 Signals Renewed Weakness - 29.08.2026
Current Market Price: 31,281.70
Market Prediction
- Nifty IT has reclaimed all major moving averages, establishing bullish dominance with improving momentum. RSI near 70.91 and CCI above 100 confirm strength but also signal short-term overheating. Positive MACD and rising ADX support continuation above 31,350 toward 31,600–31,900; failure below 31,000 could trigger profit-booking toward 30,750–30,600 during volatile sessions.
Upcoming Events
- US Employment Data: Softer numbers may improve rate expectations and technology valuations; stronger data could pressure global IT sentiment.
- Global Technology Earnings: Positive AI and cloud-spending guidance could support Indian IT shares; weak forecasts may trigger profit-booking.
- USD/INR Movement: Rupee depreciation may benefit export revenues, while sustained appreciation could moderate earnings expectations for IT companies.
Major Support and Resistance
- Support: 31,000, 30,750, 30,600
- Resistance: 31,350, 31,600, 31,900
Volume Analysis
- Volume is near 6.85 million, showing improving participation during the latest recovery. Price strength is technically supported, although sustained expansion above 31,350 remains essential; fading activity near resistance could invite technology-sector profit-booking at higher levels.
Final Takeaway
- Nifty IT holds the strongest structure among major sectors, supported by moving-average alignment and positive momentum. However, overbought readings warrant caution near 31,600–31,900. Holding 31,000 preserves bullish control; lower levels may initiate orderly profit-booking pressure.
Next Week Prediction
- Next week, technology shares may retain leadership above 31,000, targeting 31,600–31,900; elevated momentum readings could nevertheless produce intermittent consolidation or profit-booking near upper resistance zones.
Scenario-Based Outlook
- Bullish Scenario: Above 31,350, price may move toward the 31,600–31,900 zone.
- Bearish Scenario: Below 31,000, downside risk toward the 30,750–30,600 zone.
- Neutral Scenario: Between 31,000–31,350, consolidation is likely.
Disclaimer: This research report is for informational purposes only. This is not an offer to buy or sell securities. Past performance is not indicative of future results. There is no guarantee of returns. Investments in securities are subject to market risks including loss of capital. Investors should consult their financial advisor before making any investment decisions.
