Signs of recovery are emerging after a downturn in IT stocks. A surge is anticipated in the Nifty IT index and major stocks such as Infosys, TCS, and HCL Technologies.
IT Stock: IT stocks have experienced a sharp decline over the past four months, primarily due to profit-booking after the Nifty IT index reached record highs. After reaching a record high of 46,089 in December 2024, the Nifty IT index has now fallen by 22.3% to 35,805. Simultaneously, the Nifty 50 index also witnessed an 11.6% drop.
Who Benefited in the Nifty IT Index Decline?
LTIMindtree suffered the most significant loss in the Nifty IT index, plummeting by 37%, while Mphasis experienced a 32% decline. Major IT stocks like Infosys, TCS, and HCL Technologies also registered a 23% drop. Concurrently, consistent selling by FPIs (Foreign Portfolio Investors) further exacerbated the losses in IT shares. In the first half of March, FPIs offloaded IT stocks worth ₹6,934 crore.
Will IT Stocks Stage a Rally?
While the market has shown signs of recovery recently, IT stocks have failed to keep pace. The Nifty 50 index has risen by 5% from its March lows, while the Nifty IT index has only seen a 3.3% increase. The question now is whether IT stocks will rally alongside the broader market.
Nifty IT Index and Major Stocks Chart Overview
Nifty IT
Current Price: 37,000
Upside Potential: 6.2%
Support Levels: 36,680; 36,450; 36,150
Resistance Levels: 38,200; 38,350; 38,640; 39,300
The Nifty IT index shows bullish signals, and if it crosses the 38,200 level, it could potentially reach 39,700.
Infosys
Current Price: ₹1,622
Upside Potential: 4.8%
Support Levels: ₹1,565; ₹1,520
Resistance Levels: ₹1,637; ₹1,662; ₹1,680
Infosys shows signs of recovery after being in the oversold zone. If it sustains above ₹1,611, it could reach ₹1,700.
TCS
Current Price: ₹3,566
Upside Potential: 8.1%
Support Levels: ₹3,462; ₹3,380
Resistance Levels: ₹3,607; ₹3,687; ₹3,746; ₹3,786
TCS shows mildly positive signals, and if it sustains above ₹3,607, an upward trend is likely.
HCL Technologies
Current Price: ₹1,570
Upside Potential: 8.5%
Support Levels: ₹1,550; ₹1,519
Resistance Levels: ₹1,645; ₹1,660
Stability at the ₹1,591 level in HCL suggests an expected upward trend. If it remains above ₹1,550, it could reach ₹1,703.
LTIMindtree
Current Price: ₹4,470
Upside Potential: 13.6%
Support Levels: ₹4,450; ₹4,355
Resistance Levels: ₹4,678; ₹4,824; ₹4,850
LTIMindtree stock is in the oversold zone and is likely to rally if it sustains above ₹4,450, potentially reaching ₹5,076.
