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IT index breaks out! But can the rally sustain?           

What happened?

The NSE IT Index jumped 4.3% yesterday — its biggest single-day gain since July 12, 2024. Key drivers of the rally

Hopes of a US-China trade deal

  Strong performance by US tech stocks
  Better-than-expected earnings from Indian IT majors
  The index gapped up and held gains at close — a bullish signal.

 Why it matters:

  The index closed above a falling trendline drawn from February highs — a positive technical breakout
  But it’s now facing resistance near 35,680 — an old support level turned hurdle
  This area also overlaps with the April 3rd gap-down barrier
  Critically, the rebound is inside a moving average envelope that’s blocked all previous rallies since December

 Key levels to watch:

  Support: 34,528 (closing basis)
  Breakout Potential: A close above 35,900 could trigger a 3.6% rally toward 37,200

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