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The index has been in a medium-term sideways movement in the wide band between 10,000 and 10,900 since February this year. The index was resilient,— the Nifty 50 and Sensex in the previous week and marginally gained by 32 points to close at 10,632.1.
The index recently managed to hold above the key support level of 10,400 and started to move higher breaching its 21 and 50-day moving averages. The level of 10,400 is a significant long-term support . A strong plunge below this support can pull the index down to 10,200 and 10,000 over the medium term. But a strong upward breakthrough of the immediate resistance at 10,900 can bring back bullish momentum and take the index higher to 11,200 levels over the medium term. The Nifty IT index has been on a long-term downtrend since its peak of 12,908 in March 2015. It needs to emphatically rally beyond the key resistance level of 11,600 to alter the downtrend and take the index higher to 12,000 and 12,300 levels in the long run. However, the downtrend will remain intact if the index fails to move beyond 11,600. On the downside, a decisive fall below 10,000 can pull the index down to 9,800 and 9,600 levels. Key support below 9,600 are placed at 9,400 and 9,200.
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