Why IT sector remains weakest link and investors should reduce exposure? Share.Market expert explains

The IT sector witnessed a sharp decline, shedding over 2,000 points in just one week, as fears of a U.S. recession rattled investor confidence and stocks may remain volatile until macroeconomic conditions stabilize, Om Ghawalkar, Market Analyst at Share.Marketsaid, recommending risk-averse investors to consider reducing exposure. This analyst spells-out strategy in previous week’s major movers viz. IndusInd Bank, SPARC, Data Patterns and 3 more stocks. Excerpts:

Nifty closed with weekly declines of 0.7%, trading in a close range last week but this week has started on a positive note. What is the chart suggesting about the course of its move and levels that will be important to watch out for?
Despite U.S. tariff hikes and a downturn in global markets, Nifty demonstrated remarkable stability, declining only 0.7% this week. The index traded within a tight range of 22,316 to 22,676, maintaining levels close to its pre-election positioning.

With support around 21,900 — 22,000 and resistance at 22,800 — 23,000, analysts suggest that Nifty’s resilience reflects investor confidence amid macroeconomic uncertainties. As global volatility persists, market participants will closely watch key levels for potential breakouts or corrections in the coming weeks.

The IT sector was the weakest link this week and it fell over 5%. Whatever positive sentiments that were revived post Q3 earnings have been battered because of fears of US recession. People who have invested in this theme in the last one year have only burned their hands.