Aetram Research India: NIFTY IT Weekly Sector Outlook
Nifty IT Sellers Control the Trend Below 29,795; Losing 28,800 Risks Further Declines, While Reclaiming 29,795 Could Spark Recovery - 12.09.2026
Current Market Price: 28,921.50
Market Prediction:
- Nifty IT index is trading below all three visible moving averages after a sharp retreat from its recent highs. RSI near 36 signals weak momentum, though the latest candles hint at stabilization around 28,800. A sustained recovery above 29,795 could test 30,440; losing 28,800 would keep the downward trend intact.
Upcoming Events:
- Negative catalyst: Higher-than-expected Indian wholesale inflation on 14 September could weaken domestic equity sentiment.
- Positive catalyst: Stronger US retail sales, due 16 September, could improve sentiment toward export-oriented IT services.
- Negative catalyst: A restrictive Federal Reserve decision on 16 September could weigh on US technology spending expectations.
Major Support and Resistance:
- * Support: 28,800, 28,500, 28,000
- * Resistance: 29,795, 30,440, 30,696
Volume Analysis:
- Recent selling has pushed the index lower without a clearly visible volume climax. The small stabilization near 28,800 also lacks strong participation, so volume does not yet support a confident call that selling has ended.
Final Take Away:
- Nifty IT remains the weaker structure among the indices reviewed, with price well below its moving averages and momentum subdued. Buyers need to defend 28,800 and regain 29,795 before a recovery gains technical credibility.
Next Week Prediction:
- Holding 28,800 could produce a limited rebound toward 29,795. If that floor gives way, attention shifts to 28,500 and then 28,000.
Scenario-Based Outlook:
- Bullish Scenario: Above 29,795, price may move toward the 30,440–30,696 zone.
- Bearish Scenario: Below 28,800, downside risk increases toward the 28,500–28,000 zone.
- Neutral Scenario: Between 28,800–29,795, 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.
