Analyst says Nifty IT Index nears critical resistance
The Nifty IT Index has staged a strong recovery from recent lows near 33,000, with many of the sector’s biggest players leading the charge. However, according to SEBI-registered analyst Rajneesh Sharma, the index now faces a strong test at the key resistance zone around 39,000. This level is particularly significant as it coincides with the zone where the index broke down from a rising wedge pattern in February-March 2025.
Sharma, who has been tracking the Nifty IT Index closely, believes that the current level presents a critical juncture for the sector. “The index has been on a strong uptrend since the lows, but now it’s facing a major hurdle,” he said in an interview. “The zone around 39,000 is a key resistance area that has been tested multiple times in the past. If the index can’t break through this level, it could lead to a consolidation or even a pullback.”
The Nifty IT Index has been one of the best-performing sectors in the Indian market recently, with many of its constituents posting strong gains. The index has rallied over 12% in the past month alone, with top players like TCS, Infosys, and HCL Tech leading the charge. This surge has been driven by a combination of factors, including robust demand from major geographies, strong earnings growth, and attractive valuations.
However, Sharma believes that the sector’s recent gains may be unsustainable in the long term without a breakout above the critical resistance zone. “The index has been trading in a tight range for the past few months, with the upper end of the range around 39,000,” he said. “If the index can’t break through this level, it could lead to a reversal of the recent gains and a potential pullback.”
Sharma’s comments are supported by technical analysis, which suggests that the Nifty IT Index is facing a key resistance area. The index has been trading in a rising wedge pattern since the beginning of the year, with the upper end of the wedge around 39,000. A breakout above this level would be a strong bullish sign, while a failure to break through could lead to a reversal of the recent gains.
The Nifty IT Index’s performance is closely watched by investors and analysts alike, as it is seen as a barometer of the overall health of the Indian technology sector. The sector is a significant contributor to the country’s GDP and has been a key driver of growth in recent years.
In conclusion, while the Nifty IT Index has staged a strong recovery from recent lows, it now faces a critical test at the key resistance zone around 39,000. According to SEBI-registered analyst Rajneesh Sharma, a failure to break through this level could lead to a consolidation or even a pullback. Investors and technical analysts will be closely watching the index’s performance in the coming days to see if it can break through this critical resistance area.
