Nifty IT index could target 35,000 amid potential leadership shift
Technical analyst Vatsal Bhuva suggests the 18 per cent October rally may signal a durable cycle for Indian technology stocks.
Vatsal Bhuva, a technical analyst at LKP Securities, said the Nifty IT index could target 35,000. He noted that the 18 per cent surge in October might represent a durable leadership cycle rather than a simple technical rebound.
Bhuva stated that the index has reclaimed its short-, medium-, and long-term moving averages, including the 50-week SMA. He also pointed to a bullish RSI crossover, the first since January 2025, as an indicator of improved momentum.
The analyst suggested that capital might rotate towards Indian IT companies if profit-booking continues in global AI and semiconductor stocks. This could act as a trigger for the sector.
Regarding broader market trends, Bhuva observed that the October recovery was selective. While the Nifty gained 1.91 per cent during the month, the Nifty Midcap 150 and Nifty Smallcap 100 indices declined by 3.75 per cent and 4.06 per cent, respectively.
On individual stocks, Bhuva said Swiggy's technical structure remains weak with limited recovery potential towards Rs 190. He noted that a sustained breakdown below Rs 170 could lead to further weakness towards Rs 155.
For Acutaas Chemicals, Bhuva indicated the stock is in a structural uptrend. He said a breakout above Rs 3,700 could lead to a rally towards the Rs 4,350–4,700 range.