More Stories

Informist, Friday, Aug. 22, 2025

MUMBAI – Information technology stocks are expected to continue their positive momentum next week due to comfort on valuations. Any positive cues on an interest rate cut by the US Federal Reserve at its September meeting will further boost the positive momentum, according to analysts. US Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Symposium, due later in the day, will provide insight on the liquidity outlook and future interest rate trajectory.

Investors will now focus on Powell's address for firm cues on whether the central bank will cut interest rate or not, as minutes of the July Federal Open Market Committee meeting indicated that most Federal Reserve policymakers agreed that it was too soon to lower interest rates. Policymakers noted rising threats to the economy that would warrant monitoring, though they largely agreed that their current stance was the appropriate way to go, CNBC reported Wednesday. 

US President Donald Trump has been demanding that Powell and his colleagues lower interest rates in an effort to boost economic growth and reduce interest payments on government debt. So far, the Federal Reserve has refused and opted to hold interest rates steady as policymakers observe the effects of tariffs.

With the 50% tariffs on Indian imports to the US set to take effect from Wednesday, any further developments on that front will also be monitored by the Street. Earlier this month, US President Donald Trump issued an executive order, hitting India with an additional 25% tariff, effective Aug. 27, over its purchases of Russian oil. With this, the culminative additional tariff on Indian exports to the US will be 50%, among the highest rates imposed by the US. 

The Nifty IT index rose 1.7% over this week, outpacing the rise of around 1% in both the Nifty 50 and the Sensex. This marks the second straight week of rise for the sectoral index after its five-week losing run. Barring HCL Technologies, all constituents of the index rose over the week, with Coforge leading the pack with an over 6% rise. 

"Nifty IT index is showing initial signs of reversal from its ongoing down move, going ahead, we expect it to move northward in near term," Vipin Kumar, derivatives analyst at Globe Capital Market said. Immediate support for the index is seen around 34500 and resistances around 36700, Kumar added.

TOP HEADLINES

* Intellect Design arm in pact with UK co to set up JV entity in GIFT City
* Wipro in pact to buy HARMAN's digital transformation solutions business unit
* Tata Elxsi, Suzuki Motor open cloud-enabled facility in Thiruvananthapuram
* L&T Tech launches Gen AI-based product development services framework
* Tech Mahindra incorporates arm in Saudi Arabia to manage Egypt, Bahrain ops
* TCS signs pact with Finland's Kesko to drive AI-led retail transformation
* Infosys arm collaborates with Australia's Uniting Fincl for banking solution
* HC asks Maharashtra Airport Development Co to refund INR 103 mln to Wipro
* IPO Alert: OnEMI Tech Solutions files DRHP for INR-10-bln fresh issue, OFS
* TCS opens AI-driven ops centre in Mexico, to focus on Latin America business

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 Avishek Dutta

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. 2025. All rights reserved.