Aetram Research India: NIFTY IT Weekly Sector Outlook
Nifty IT Bulls Face Profit Booking; Holding 31,500 May Support Recovery Above 32,500, While Failure Risks 31,000 - 24.10.2026
Current Market Price: 31,995.50
Market Prediction:
- October’s strong advance has paused near prior supply, leaving Nifty IT above its rising nearest average. RSI at 51.95 suggests cooling momentum rather than oversold conditions. MACD remains positive, but its negative histogram signals fading impetus. Holding 31,500 favours stabilisation; above 32,500 may reopen 33,000, while failure could expose 31,000.
Upcoming Events:
- Market reaction to Infosys’ reduced growth guidance could pressure sector valuations.
- Follow-through from Infosys’ strong deal bookings could support revenue visibility.
- Further AI contract announcements could strengthen confidence in technology spending.
Major Support and Resistance:
- Support: 31,500, 31,000, 30,500
- Resistance: 32,500, 33,000, 33,500
Volume Analysis:
- Recent trading activity shows occasional volume increases during the advance, followed by quieter participation near the peak. The pullback lacks an exceptional volume surge, suggesting profit booking without conclusive evidence of widespread distribution so far.
Final Take Away:
- Unlike a confirmed bearish reversal, the current retreat is testing the durability of October’s recovery. Buyers retain a structural foothold above 31,500, but renewed leadership requires stronger momentum and sustained acceptance beyond the 32,500 resistance.
Next Week Prediction:
- An initial consolidation around 32,000 appears plausible. Defence of 31,500 could support another 32,500 attempt; losing support may deepen the correction towards 31,000 next week.
Scenario-Based Outlook:
- Bullish Scenario: Above 32,500, price may move toward the 33,000–33,500 zone.
- Bearish Scenario: Below 31,500, downside risk toward the 31,000–30,500 zone.
- Neutral Scenario: Between 31,500–32,500, 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.
