Is Nifty IT Bottoming Out After Falling 12% From February High?

Mumbai
The IT sector has been in a consolidation mode for more than a year now, especially after its robust performance between March 2020 and January 2022, when gave a massive 259 percent return, driven by a robust order book and increasing digitisation. From January 2022 to now, the Nifty IT index has never broken its record high of 39,447 (January 4, 2022) and it has corrected 29 percent from that record high till Monday. Since October 2022, it has largely been consolidating in the 27,800-31,500 range.
Twice it attempted to get back firmly above the 31,000-mark but failed on global concerns, mainly growth worries. The index fell nearly 12 percent from its recent swing high of 31,587 on February 16 to 27,800 now, which largely coincides with the January lows, underperforming the Nifty50, which fell over 6 percent in the same period. The IT index has been trying to consolidate around this mark (27,800) for 2-3 sessions. It looks like the index is in the process of bottoming out as the momentum indicator RSI (relative strength index 14), around 30, is already at oversold levels. This showed a small reversal on Monday.