Nifty IT Index Major Downtrend Strongly Avoid Bottom Fishing

The Nifty IT Index appears to have ended its major uptrend in 2025 after peaking near 46,000 in December 2024. Since then, the index has witnessed a severe correction of approximately 42% from its peak, signalling a significant deterioration in its long-term technical structure. The price action suggests that smart money distribution and institutional selling began around March 2025, with bearish momentum intensifying sharply in February 2026. Successive lower highs, lower lows and repeated failures to sustain recoveries indicate that the broader trend remains firmly bearish. The index is currently approaching a critical phase, with major long-term support placed near 25,300, marked by the green horizontal line on the chart. Although this level may attract temporary buying interest, the prevailing weakness raises the risk of a decisive breakdown in the coming months, potentially triggering another round of aggressive selling across IT stocks. A sustained breach below 25,300 could accelerate downside momentum and further weaken investor sentiment. We strongly recommend investors avoid bottom fishing and premature value buying in IT stocks, as a significant price correction does not necessarily indicate that a stock has reached its bottom. Buying against a dominant downtrend could expose investors to prolonged capital erosion and a potential value trap. Investors should instead wait for a confirmed trend reversal, the formation of a durable base and a sustained improvement in price structure before considering fresh exposure. Unless the Nifty IT Index reclaims crucial resistance levels and demonstrates convincing bullish momentum, the major downtrend is likely to persist, warranting a cautious and defensive approach towards the IT sector.