IT Stocks Outlook
May fall next wk, sharp corrections on earnings unlikely
This story was originally published at 22:20 IST on 11 July 2025
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MUMBAI – While information technology stocks are likely to fall next week, analysts don't expect any sharp correction due to earnings as the market is expected to have factored in muted financial growth for the sector. The stocks will take cues from management commentary and guidance by major IT players, HCL Technologies, Tech Mahindra, Wipro, LTIMindtree and Tata Technologies.
Guidance for growth in the current financial year amid heightened concern about discretionary spending and commentary on growth prospects for the September quarter will impact stock movement in the coming weeks, said Piyush Pandey, senior vice president at Centrum broking. Barring LTIMindtree, all four companies scheduled to announce their earnings next week are expected to report subdued earnings for the latest quarter.
Friday, IT stocks saw a significant selling pressure after IT behemoth Tata Consultancy Services reported weaker-than-expected sales for the June quarter, impacted by a ramp-down in the Bharat Sanchar Nigam deal. "With a disappointing start to the IT sector earnings, the sector has breached its consolidation on the downside and formed a big bearish candle, signalling continuation of the bearish sentiment," Aditya Gaggar, Director of Progressive Shares, said in note Friday.
The company's management noted that delay in decision-making by clients in terms of discretionary spending continued in the June quarter due to the uncertain macroeconomic environment, primarily due to concern about the US tariff policies. "This might have an effect on other IT companies, too, but we will have to wait and see for that," an analyst at a domestic brokerage told Informist. Following the earnings announcement, brokerages Elara Securities, Nomura and Nuvama cut their respective target prices for the stock, while IDBI Capital downgraded it to 'hold.' However, Incread Equities raised its target price for the stock on encouraging deal wins.
This week, the Nifty IT index fell nearly 4% week on week, compared to the over 1% fall in the benchmark Nifty 50 and Sensex. All constituents barring L&T Technologies fell week on week. Next week, the IT index is expected to find support at 37314.70 levels and resistance at 38180.10.
TOP HEADLINES
* Tata Elxsi signs pact with Synopsys for automotive virtualisation solutions
* TCS cites continued client spending delays amid macroeconomic uncertainty
* Analyst Concall: TCS says delay in clients' decision making in Q1 to ease Q2
* Analyst Concall: Transportation ops to lead Tata Elxsi growth in coming qtrs
* Earnings Review: TCS Apr-Jun sales QoQ fall worst in 5 years as demand hit
* Mphasis arm acquires 26% stake in US-based company Aokah for $4 mln
* Earnings Review: Tata Elxsi PAT falls at sharpest rate since Apr-Jun FY20
* Earnings Outlook: Weak svcs, products revenue seen weighing on HCL Tech PAT
* HCL Tech signs 10-yr deal with New Zealand's Dunedin City to upgrade IT svcs
* HCL Tech, Astemo Cypremos partner for innovation in smart vehicle ecosystem
* I-T department nearly halves Mphasis tax demand of INR 11.65 billion
* Earnings Outlook:Weakness in transport, media ops to hit Tata Elxsi Q1 sales
* Tata Tech, Emerson in pact to develop testing solutions in e-vehicle space
* HCL Tech partners with US-based co Workday for AI-based solutions
* Earnings Outlook: TCS Q1 growth seen muted; analysts divided on EBIT margin
* Affle 3i gets patent for system to detect advertisement fraud
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:
| Company | Price | Week-on-week change in % | Resistance | Support |
| COFORGE LTD | 1867.80 | (-)4.20 | 1916.20 | 1822.00 |
| HCL TECHNOLOGIES LTD | 1638.30 | (-)5.10 | 1666.80 | 1615.80 |
| INFOSYS LTD | 1594.90 | (-)2.80 | 1632.40 | 1544.20 |
| L&T TECHNOLOGY SERVICES LTD | 4410.50 | 0.60 | 4514.70 | 4228.90 |
| LTIMINDTREE LTD | 5206.00 | (-)2.10 | 5324.30 | 5111.30 |
| MPHASIS LTD | 2838.80 | (-)2.90 | 2912.80 | 2779.00 |
| PERSISTENT SYSTEMS LTD | 5578.50 | (-)5.40 | 5706.20 | 5496.20 |
| TATA CONSULTANCY SERVICES LTD | 3266.00 | (-)4.50 | 3361.30 | 3213.50 |
| TECH MAHINDRA LTD | 1602.50 | (-)3.20 | 1625.00 | 1566.60 |
| WIPRO LTD | 258.30 | (-)4.40 | 263.70 | 255.10 |
| NIFTY IT | 37693.25 | (-)3.80 | 38180.10 | 37314.70 |
| NIFTY 50 | 25149.85 | (-)1.20 | 25393.90 | 25007.00 |
| BSE SENSEX | 82500.47 | (-)1.10 | 83259.60 | 82062.70 |
End
Reported by Arya S. Biju
Edited by Akul Nishant Akhoury
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