Aetram Research India: NIFTY IT Weekly Sector Outlook
Nifty IT Bears Face Recovery Pressure; Above 29,100 Favours 29,500–30,000, While Below 28,100 Revives Downside Risk - 10.10.2026
Current Market Price: 28,574.90
Market Prediction
- Nifty IT’s rebound is gaining momentum, with RSI at 60.38 and MACD above its signal line. However, the broader lower high structure remains bearish beneath overhead resistance. ADX at 18.71 limits trend conviction. Sustaining above 29,100 could support 29,500–30,000; losing 28,100 would expose 27,700–27,200 and undermine the recent recovery attempt.
Upcoming Events
- Positive catalyst: Strong quarterly deal wins and improved revenue guidance could support sector confidence.
- Positive catalyst: Improving client technology budgets could strengthen expectations for discretionary spending recovery.
- Negative catalyst: Weak earnings guidance or delayed client decisions could renew pressure on valuations.
Major Support and Resistance
- Support: 28,100, 27,700, 27,200
- Resistance: 29,100, 29,500, 30,000
Volume Analysis
- An isolated large volume spike stands out, but subsequent participation appears considerably lighter. The latest displayed volume is approximately 8.81 million. Recovery needs sustained volume expansion to establish stronger demand beyond the recent price rebound.
Final Take Away
- Nifty IT’s improving indicators suggest a recovery attempt, while the broader structure still favours bears. Reclaiming 29,100 would strengthen the case for further gains. Below 28,100, renewed weakness becomes relevant; earnings guidance could influence sector conviction.
Next Week Prediction:
- Nifty IT could challenge 29,100 next week. Sustained acceptance favours 29,500–30,000; rejection keeps consolidation possible, while losing 28,100 raises downside risk toward the 27,700–27,200 zone.
Scenario-Based Outlook
- Bullish Scenario: Above 29,100, price may move toward the 29,500–30,000 zone.
- Bearish Scenario: Below 28,100, downside risk toward the 27,700–27,200 zone.
- Neutral Scenario: Between 28,100–29,100, consolidation 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.
