Nifty IT Index Turns Bullish: Fibonacci Golden Ratio and Strong Demand Zone Signal Potential Rally
Nifty IT Index Technical Analysis
The Nifty IT Index has entered an important technical zone that could mark a potential shift from bearish to bullish momentum. The index’s long-term price structure, Fibonacci retracement levels, weekly RSI and historical support levels are currently aligning around a major demand zone.
From 10,991 to 46,089: A Massive Four-Year Uptrend
The Nifty IT Index made a major low of 10,991 in March 2020 and subsequently entered a powerful long-term uptrend. The index climbed to a high of 46,089 in December 2024, delivering approximately a 300% return in around four years.
This strong rally established a clear rising trend structure. However, after reaching the December 2024 high, the index began showing signs of a major trend transition.
The long-term uptrend eventually broke down in July 2025, indicating a shift from the previous bullish structure toward a corrective downtrend.
February 2026 Retest and Subsequent Decline
Following the July 2025 breakdown, the Nifty IT Index moved higher and retested the broken trend structure. This retest was completed around February 2026, after which the index started a significant decline.
The correction has now brought the index toward an important Fibonacci retracement zone between 0.50 and 0.618 of the March 2020–December 2024 major move.
The key Fibonacci levels are:
0.50 Fibonacci: 28,540
0.618 Fibonacci: 24,398
The broader area between these levels represents an important retracement and potential accumulation zone.
Weekly RSI Enters Oversold Territory
Momentum indicators are also showing signs of extreme weakness.
During the major market decline in 2020, the Nifty IT Index's weekly RSI reached around 28, entering an oversold region before the index began its subsequent major recovery.
At the current Fibonacci support area, the weekly RSI has fallen to approximately 25, again entering deeply oversold territory.
This creates an interesting technical setup:
Major Fibonacci support + historically important demand zone + deeply oversold weekly RSI
Although an oversold RSI alone does not guarantee a reversal, the combination of these technical factors increases the importance of the current price zone.
26,184–26,189: Historical Major Support Zone
One of the strongest technical observations on the chart is the repeated reaction around the 26,184–26,189 region.
The Nifty IT Index recorded important lows around this level on three separate occasions:
| Period | Nifty IT Low |
|---|---|
| July 2022 | 26,189 |
| September 2022 | 26,187 |
| April 2023 | 26,184 |
The repeated reactions from almost the same price level over several months established this area as a significant historical support and demand zone.
Because the market previously attracted strong buying interest around this region, the same area becomes technically important again when the index returns to it after a major correction.
Why the Current Zone Is Important
The present setup brings several technical factors together:
The index has completed a major long-term correction.
Price has moved toward the 0.50–0.618 Fibonacci retracement zone.
The weekly RSI is around 25, indicating deeply oversold momentum.
The 26,184–26,189 region has acted as major historical support.
The July 2025 trendline breakdown was followed by a February 2026 retest and subsequent decline.The current price action is approaching an area where historical demand previously emerged.
This combination makes the 26,000–26,200 region a critical technical zone for the Nifty IT Index.
Nifty IT Bullish Reversal Setup
The technical structure suggests that the Nifty IT Index is now positioned at a potentially important reversal area. However, the confirmation of a bullish trend should come from price action rather than relying solely on support or an oversold RSI.
A sustained hold above the historical demand zone, followed by higher highs and higher lows, would strengthen the case for a broader bullish reversal.
Conversely, a decisive breakdown below the major support zone could invalidate the immediate bullish setup and open the possibility of further downside.
Therefore, the 26,000–26,200 zone remains the key level to watch from a long-term technical perspective.
Conclusion
The Nifty IT Index has experienced a major correction after its powerful 10,991-to-46,089 rally. The current decline has brought the index toward the Fibonacci golden-ratio retracement area, while the weekly RSI has reached deeply oversold levels.
More importantly, the 26,184–26,189 historical support zone, which successfully attracted buyers in July 2022, September 2022 and April 2023, is once again becoming a crucial demand area.
The alignment of Fibonacci support, historical demand, and oversold weekly RSI makes the current Nifty IT structure technically significant.
If the historical demand zone holds and price action confirms a reversal, the Nifty IT Index could potentially begin a new bullish phase. For now, the 26,000–26,200 area remains the major support zone and the most important level to monitor for confirmation of a bullish reversal.