Aetram Research India: NIFTY IT Weekly Sector Outlook
Nifty IT Bulls Challenge 32,000; Sustained Strength Favours 32,500–33,000, While Losing 31,200 Could Trigger a Pullback - 17.10.2026
Current Market Price: 31,924.10
Market Prediction
- Nifty IT’s sharp advance is testing a recurring supply zone around 32,000. RSI above 83 and ADX near 62 highlight powerful but stretched momentum. Positive MACD supports buyers, although chasing carries elevated pullback risk. Sustaining above 32,000 could favour 32,500–33,000; slipping below 31,200 would expose 30,500 and interrupt recovery progress.
Upcoming Events
- Infosys results scheduled for October 23: stronger revenue guidance and deal momentum could support IT valuations; disappointing commentary could encourage profit-taking.
- October US flash PMI releases: improving services demand could support technology-spending expectations; persistent price pressures could raise interest-rate concerns.
- Upcoming US weekly jobless claims: an orderly labour-market slowdown could ease rate concerns; pronounced deterioration could weaken expectations for client spending.
Major Support and Resistance
- Support: 31,200, 30,500, 29,530
- Resistance: 32,000, 32,500, 33,000
Volume Analysis
- Volume has improved during the latest upswing, but remains below isolated historical spikes. Participation lends some support to the rally, although sustained expansion near 32,000 would strengthen confidence. Institutional accumulation cannot be established from this.
Final Take Away
- Technology shares display strong directional momentum, yet the index is approaching familiar resistance with overbought readings. Buyers retain control above 31,200, while sustained acceptance beyond 32,000 is needed to support further gains without immediate rejection.
Next Week Prediction
- Nifty IT could reach 32,500–33,000 above 32,000, but stretched momentum may cause pauses; losing 31,200 would increase the probability of a retreat toward the 30,500 support.
Scenario-Based Outlook
- Bullish Scenario: Above 32,000, price may move toward the 32,500–33,000 zone.
- Bearish Scenario: Below 31,200, downside risk could extend toward the 30,500–29,530 zone.
- Neutral Scenario: Between 31,200–32,000, 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.
