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Informist, Friday, Oct. 25, 2024

MUMBAI – Shares of most information technology companies are expected to trade with a positive bias next week, after most companies posted healthy growth in earnings for Jul-Sept, according to analysts. This week, the Nifty IT index closed 0.2% lower at 42038.85 points. In comparison, the benchmark Nifty 50 and the BSE Sensex declined 2.7% and 2.2%, respectively.

Of the 10 constituents of the Nifty IT index, six declined week-on-week, while the rest gained. Coforge and Persistent Systems were among the top gainers. Mphasis and Tata Consultancy Service were among the top losers. Next week, the IT index's support is seen at 41601.60 and resistance at 42584.80. 

"The IT index has shown relative resilience, with a minimal decline this week and a marginal monthly gain, compared to a more than 6% drop in the Nifty benchmark. We anticipate this trend to persist, with the IT sector likely to outperform. TCS, Tech Mahindra, Wipro, and HCL Tech are well-positioned for potential outperformance," said Rajesh Bhosale, technical analyst at Angel One.

According to analysts, while the earnings of most companies have disappointed the market, quarterly earnings by mid-cap IT companies have stood out. The earnings of these companies have been robust and the management's commentary has been healthy, which has supported IT stocks. Going ahead, these stocks may find some support from potential interest rate cuts in the US. The US Federal Reserve's next monetary policy meeting is scheduled on Nov 6=7.   

TOP HEADLINES
* India, Germany sign MoUs in critical, emerging technologies, innovation
* Intellect Design Jul-Sept consol PAT falls 29.1% QoQ , sales down 8%
* Earnings Review: Oracle Fincl Jul-Sept sales dn 4%, PAT falls 6% on quarter
* Infosys launches small language models in partnership with Nvidia
* HC seeks status report from Centre on measures taken to counter deepfakes
* Wipro announces new integrated Nvidia-powered AI solutions
* Cyient arm to buy stake in Abu Dhabi-based co, to invest in Azimuth AI
* Cyient Jul-Sep consol PAT rises 24.5% QoQ to INR 1.79 billion
* Infosys in pact with University of Cambridge to set up AI lab in London
* Wipro in pact with Wealthtime to deliver digital platform for advisers
* Birlasoft Jul-Sept consol net profit falls 12.1% YoY to INR 1.28 billion
* Infosys expands pact with Meta to drive innovation in generative AI
* Analyst Concall: Coforge ups Cigniti EBITDA margin guidance to 18% by FY25
* SC junks NCLAT order approving BYJU'S parent co-BCCI deal in insolvency case
* Analyst Concall: Coforge ups Cigniti EBITDA margin guidance for FY25 to 18%
* Earnings Review: Coforge Jul-Sept QoQ PAT, revenue growth highest in 5 years
* Analyst Concall: Healthy orderbook to aid Persistent Systems' growth - mgmt
* Earnings Review: Persistent Systems' Jul-Sept earnings beat Street's view
* Firstsource to build domain-centric large language model for its US business
* Sonata Software wins multi-year AI-powered managed services contract
* Delhi HC bars party from using Dream 11's trademark, layout in website
* Zensar Tech Jul-Sept consol PAT falls 1.4% on qtr to INR 1.56 billion
* LTIMindtree launches AI-Smart Underwriter solution powered by ServiceNow
* Earnings Review: One 97 Comm in black for 1st time on sale of ticketing ops
* Wipro collaborates with Ericsson to migrate Odido users to Ericsson Billing
* PRESS: Nvidia in preliminary talks with India to jointly develop AI chip
* Earnings Outlook: Persistent Systems Jul-Sept net seen up on large deal wins
* Earnings Outlook: Coforge Jul-Sept PAT, revenue seen up on BFSI recovery
* Brokerages see Tech Mahindra on track to meet FY27 aim post Jul-Sept results
* Mastek, Innovaccer partner to provide solutions to healthcare cos
* RattanIndia Ent launches new musical instruments brand Akkord
* IRDAI asks insurers to check vulnerabilities in IT systems after data leaks
* Cyient incorporates US stepdown subsidiary Cyient Semiconductors
* Analyst Concall:Don't see major change in demand environ, says Tech Mahindra
* Netweb Technologies Jul-Sept net profit rises 66.5% QoQ to INR 257.15 mln
* Earnings Review: Tech Mahindra Jul-Sept net profit growth highest in 20 qtrs
* Tech Mahindra continues to see volatility in telecom, BFSI portfolios
* Earnings Outlook: Muted deal wins, weak core ops to slow Tech Mahindra
* Mastek Jul-Sept consol net profit rises 79.9% QoQ to INR 1.29 billion

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

Reported by Darshan Nakhwa 

Edited by Tanima Banerjee

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