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Below the Quote on Technical Quotes on Nifty IT Index by Sachin Gupta, VP – Research at Choice Broking

"The Nifty IT index slipped into a clear bearish phase in February 2026 after correcting nearly 21%. The decline gathered pace when the index broke down from a Head and Shoulders pattern on the weekly chart — a classic signal of a structural trend reversal. The fall dragged the index below its crucial 10-month low of 30,918, confirming that the broader trend has turned weak.

The sell-off was largely triggered by global concerns around artificial intelligence. The launch of highly efficient enterprise tools such as Anthropic’s Claude Code sparked fears that generative AI could begin eating into traditional Application Development and Maintenance (ADM) revenues — a key revenue stream for Indian IT companies.

From a technical standpoint, the picture has deteriorated further. The index has breached the important 61.8% Fibonacci retracement level (Golden Ratio) and witnessed a negative crossover of key moving averages, commonly known as a Death Cross. This suggests that the earlier “buy on dips” approach has now shifted to a “sell on rise” strategy. With the index struggling to sustain even short-term pullbacks, the technical structure points to further downside toward the 29,300–28,700 support zone. A meaningful recovery is unlikely unless a strong global trigger — particularly stability in the Nasdaq — helps improve overall sentiment."

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