Nifty, Bank Nifty, Nifty IT: Technical analysts decode outlook for H2FY27

Tech analyst at Mirae Asset Sharekhan and SAMCO Securities flag 22,000-22,500 range as key support for Nifty in the short-term, and caution of further weakness in Bank Nifty in the H2FY27 outlook.

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised. Equity benchmark indices, the BSE Sensex and the NSE Nifty signed-off the first-half of the financial year 2026-27 (H1FY27) with a marginal gain of 0.7 per cent and 1.3 per cent, respectively. Historically, this was the modest performance by the benchmark indices in the last four years. Among key sectoral indices, Nifty Defence soared 27 per cent in H1 FY27 followed by the Metal and Auto indices, up 16 per cent and 10 per cent respectively. The more prominent, Bank Nifty gained nearly 9 per cent, while Nifty IT was the key loser, down nearly 5 per cent. Given this background, here's a technical outlook on the Nifty, Bank Nifty and the Nifty IT index for the second-half of FY27 (H2FY27) by analysts at Mirae Asset Sharekhan and SAMCO Securities. CHECK Stock Market LIVE Updates  Nifty September close: 22,620 Muthuselvaraj M, technical research analyst at Mirae Asset Sharekhan reckons the Nifty witnessed profit-taking following multi-resistance at 26,300, leading to consolidation at the higher-end of the weekly chart. 

(Chart source: Mirae Asset Sharekhan)

 

 The analyst believes that weakness could trigger a move towards the lower-end of the channel at 22,200–22,300 in the short- to medium-term. He notes, that Nifty currently holds above the 200-week Exponential Moving Average (EMA) at 22,383, which serves as a key support area. Meanwhile, Om Mehra, technical research analyst at SAMCO Securities highlights that Nifty recently declined for seven consecutive weeks. Adding that, such a long losing streak was rare and it pushed the weekly RSI to 33, closer to the oversold zone of March 2026. ALSO READ | Sensex, Nifty: Here's what happened after 9MCY loss, shows 15-year history The analyst sees support for the Nifty around 22,000-22,500 zone, where the rising trendline from June 2024 meets the March low. He reckons this could be the last line of defence for the bulls. Going ahead, Mehra expects the Nifty to trade between 22,000 and 24,800 over the next six months. However, cautions that a weekly close below 22,000 could open the doors for a dip toward  21,500. Whereas, Muthuselvaraj believes that if the Nifty sustains above 22,840, it could rally toward 24,800–25,500 levels from here. Bank Nifty September close: 54,633 Muthuselvaraj flags that the Bank Nifty witnessed profit-taking from the recent swing high of 58,480, following rejection at the 61,500 on the weekly chart. Mehra adds that the index shed 6 per cent in September, and was down 9 per cent on a year-till-date basis. The analyst from SAMCO Securities believes that the correction in Bank Nifty may not be over. 

(Chart source: SAMCO Securities)

 "Bank Nifty weekly RSI at 38 and not yet oversold, so the correction may not be over. Support for the index stands in 53,500-54,000 zone followed by 52,500-53,000," says Mehra. He cautions that a weekly close below 52,500 could open the doors for a slide toward 50,000-mark. Overall Mehra expects a likely trading range of 52,500 to 58,500 over the next six months. Echoing a similar cautious outlook, the analyst from Mirae Asset Sharekhan says the Bank Nifty could drift towards the 52,960 in the short- to medium-term, which represents a 61.8 per cent retracement of the swing range. The weekly momentum has shown a negative crossover, which is a bearish signal, cautions Muthuselvaraj. However, the analyst reckons that buying opportunities remain intact, provided the index defends 51,100. Nifty IT September close: 27,705 Mehra flags Nifty IT remains the weak, with emphasis on the ratio against the Nifty. "The ratio of Nifty IT to Nifty bounced from 1.07 to 1.30 and turned down again to 1.20. That is a failed bounce and not a relative strength turn. A move above 1.30 would be the first real sign," explains Mehra. The analyst expects the index to quote between 26,000 to 32,000 range, and adds that a  weekly close below 26,000 could trigger a fall toward 24,000-mark. On the contrary, Muthuselvaraj has a 'sideways-to-bullish' bias on the Nifty IT. The analyst believes the index is in a consolidation phase following a prolonged correction of nearly 45 per cent since December 2024, as indicated by the falling channel on the weekly chart. 

(Chart source: Mirae Asset Sharekhan)

 On the downside, the analyst does not rule out a re-test of the medium-term support at 25,700. But is hopeful, that a break above 31,214, could trigger a move toward 34,600–37,000. "The Nifty IT is trading below the 200-, 40-, and 20-week EMAs, which is a negative signal for the short-term. Overall, we expect NIFTY IT to remain sideways with a mildly bullish bias", says Muthuselvaraj.