Nifty IT Index Rallies Strongly Defying Market Dip

The Nifty IT index emerged as a major bright spot in the Indian equity markets for the week ending October 23, 2026. While the broader markets faced intense selling pressure, with the benchmark Nifty 500 index tumbling 1.24% to close at 21,427.60, the technology sector successfully decoupled from the bearish trend. Heavy institutional accumulation and strong quarterly earnings momentum allowed IT stocks to serve as a reliable defensive shield for investors during a volatile trading week. Large-cap tech heavyweights spearheaded the sector's impressive decoupling layout. Wipro led the pack with a remarkable weekly gain of 9.1%, followed closely by Tech Mahindra, which surged 8.5% on the back of resilient corporate earnings and a positive outlook for the coming quarters. Industry giant Tata Consultancy Services also saw steady accumulation, closing the week up by 7.7%, while L&T Technology Services added an impressive 6.1% to the rally. There was a RSI Divergence in the weekly charts of Nifty IT index and after the there was a sharp upmove and then a correction. After the correction now we can see a trend continuation pattern and a change in structure where in the price has started to make a lower low and higher highs. The weekly RSI 14 above 50 and the MACD Histogram above zero also indicates a bullish trend.