More Stories

Informist, Wednesday, Feb. 4, 2026

 

By Simran Rede

 

MUMBAI – All information technology stocks declined Wednesday after American depository receipts of IT companies fell overnight on concern of competition to software development firms from artificial-intelligence players. Traders built fresh short positions in the derivatives of almost all IT stocks, which dragged them lower.

 

Indian IT stocks tracked overnight losses in the technology-heavy NASDAQ Composite index, which fell over 1?ter the launch of Anthropic's legal plug-in for its Claude generative AI chatbot. There are concerns AI tools could hurt demand for conventional outsourcing services, according to analysts.

 

Premiums on out-of-the-money call contracts of Tata Consultancy Services fell 56-70% with the open interest rising to over 1 million. Premiums on the INR 1,600 strike call contracts of Infosys fell 73% with the open interest rising to nearly 5 million. However, some analysts believe the fall in Indian IT stocks Wednesday was sentimental and they may rebound in the sessions to follow.

 

Thursday, TCS is expected to find support at INR 2,900-INR 2,880 and face resistance at INR 3,100, according to Vipin Kumaar, assistant vice-president, technical and derivatives, at Globe Capital Market. The stock closed 7% lower at INR 2,999.10. The support for Infosys is pegged at INR 1,500-INR 1,450 and resistance at INR 1,580-INR 1,600, he said. The stock ended 7.3% lower at INR 1,535.80. TCS and Infosys are expected to face more selling pressure Thursday, he said.

 

Tech Mahindra is seen finding support at INR 1,540 and facing resistance at INR 1,665-INR 1,700. The stock closed 4.2% lower at INR 1,645.30. The resistance for HCL Technologies is seen at INR 1,680-INR 1,700 and support at INR 1,560-INR 1,540, according to Kumaar. The stock closed at INR 1,621.80, down 4.3%. The outlook for Tech Mahindra and HCL Tech suggests the stocks will be rangebound, he said.

 

In the options chain of the Nifty 50, traders wrote put and call options across multiple strikes, indicating rangebound movement in Thursday's session. They also covered some short positions, suggesting a positive market sentiment with the Nifty 50 not breaching its 25500-point support level.

 

The put-call ratio improved to 0.97 from 0.85, turning the bias slightly positive from sideways earlier, according to technical analysts. The support for the Nifty 50 is pegged at 25650-25600 points and resistance at 25850-25960 points, Kumaar of Globe Capital said. If the Nifty 50 manages to cross this resistance level, the index will see further upside towards 26150 points, he said.

 

Further ahead, the market direction is likely to depend on the Reserve Bank of India's upcoming policy announcement Friday and further details on the newly unveiled India-US trade pact, analysts said. 

 

--Nifty 50 February closed at 25830.00, up 12.90 points; 54.00-point premium to the spot index
--Nifty 50 March closed at 25990.00, up 13.30 points; 214.00-point premium to the spot index
--Nifty 50 April closed at 26145.00, up 23.00 points; 369.00-point premium to the spot index

 

Infosys, Tata Consultancy Services, Hindustan Aeronautics, ICICI Bank, Dixon Technologies (India), Reliance Industries, Bajaj Finance, BSE, HDFC Bank, Bharati Airtel, Wipro, Multi Commodity Exchange of India, Eternal, Trent, HCL Technologies, Power Finance Corp., and Tech Mahindra were the most actively traded underlying stocks Wednesday.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.