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Informist, Friday, Apr. 25, 2025

MUMBAI – Information technology stocks are expected to enter a consolidation phase next week, following the recent correction. The focus will remain on the trade war between the US and China.

"...we have to keep an eye on 30900 levels, so until this level holds, it is good, if it doesn't hold this in the coming week, then we might see levels as low as 26000", Rishubh Vasa, a research analyst at Indsec Securities, said.

On Friday, the Nifty IT index rose as high as nearly 2%, in line with the rise seen in the technology-dominated NASDAQ Composite on Thursday. Signals of easing trade tensions between the US and China have given some relief, Vasa said. However, he doesn't expect this to sustain. Expectations of the US Federal Reserve cutting interest rates in June had also driven the positive momentum, Sumit Pokharna, vice-president of research at Kotak Securities, said. 

Over the week, the IT index rose 6.6% and ended at 35562.25 points with all 10 constituents rising over the week. Coforge, Mphasis and Tech Mahindra were the outperformers, with each rising nearly 12% over the week. The benchmark Nifty 50 and Sensex rose 0.8% each over the week. Next week, Nifty IT index is expected to find support at 34650.70 points and face resistance at 36397.30 points. 

Engineering research and development services provider, KPIT Technologies, will announce their March quarter earnings on Monday. The company is expected to see a rebound with a nearly 4% sequential rise in both the top line and the bottom line after a weak December quarter. However, the year-on-year growth in both the metrics is expected to be softer compared with the December quarter, with demand uncertainties in the automotive industry continuing to impact the company's performance.

TOP HEADLINES

* Earnings Review:Mphasis Jan-Mar consol revenue growth highest in 12 quarters
* Analyst Concall:Cautious on FY26 margin view, bulk deals need invest: Mphasis
* Analyst Concall: No deals lost but clients faced cost burden - Tech Mahindra
* Earnings Outlook: Weak services, tech verticals to drag Tata Tech's numbers
* Earnings Review: Tech Mahindra consol PAT up 19% on qtr, beats Street's view
* Demand visibility "muddy", FY26 hiring to depend on demand - Tech Mahindra
* Cyient Jan-Mar consol sales fall 0.9% QoQ but PAT rises 39.3%
* L&T Tech Jan-Mar consol PAT falls 3.5% on quarter to INR 3.11 billion
* Analyst Concall: BFSI, tech verticals to lead growth - Persistent Systems
* Earnings Review: Strong execution helps Persistent Systems meet estimates
* Earnings Outlook: Banking, tech verticals to drive Mphasis Jan-Mar sales
* Analyst Concall:Clients likely to be cautious on big decisions - LTIMindtree
* Earnings Review: LTIMindtree Jan-Mar PAT up 4% QoQ, misses Streets' view
* Earnings Outlook:Broad growth, deals to boost Persistent Systems' sales, PAT
* Analyst Concall: Clients may rework deals, cut budgets, says HCL Tech mgmt
* Inventurus Knowledge Solutions acquires more shares of US arm for $14.5 mln
* Earnings Review: HCLTech Jan-Mar consol PAT misses view, EBIT margin slips
* Will add significantly more freshers in FY26 than in FY25 - HCL Tech mgmt
* HCL Tech sees FY26 revenue growing 2-5% in constant currency terms
* TCS partners with ICICI Sec to modernise retail trading, brokerage platform
* Equity Futures: Infosys' positive business view drives bulls to IT cos
* Intellect Design gets multi-million dollar deal from UK-based bank
* Motilal Oswal MF buys Coforge shares for INR 2.31 bln via bulk deal Thu
* Mastek Jan-Mar consol PAT falls 14.4% QoQ to INR 811 million
* Analyst Concall: Tata Elxsi hopes to do better in FY26 vs FY25
* Earnings Outlook: Ramp-down, productivity pass-back to hit LTIMindtree sales
* Infosys says on track to hire 20,000 freshers in FY26
* Earnings Review: Infosys consol sales below Street view, hit by weak demand
* Earnings Review: Tata Elxsi Jan-Mar PAT below view, posts robust deal wins
* Analyst Concall:Infosys FY26 guidance includes wage hike, tariff uncertainty
* Infosys to acquire US-based MRE Consulting; transfer 2% stake in Japanese JV
* Infosys expects FY26 revenue to rise 0-3%, operating margin seen at 20-22%
 

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 Arya S. Biju

Edited by Deepshikha Bhardwaj

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