IT Stocks Outlook
Likely to continue upward trend next week
This story was originally published at 20:52 IST on 19 September 2025
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MUMBAI – Information technology stocks are expected to continue their upward move in the coming week, according to analysts covering the sector. The Nifty IT index has been outperforming the benchmark indices for two weeks in a row. Analysts expect this to continue next week.
The Nifty IT index rose 1.3% this week, compared with the near 1% rise in the Nifty 50 and the BSE Sensex. Next week, the sectoral index is seen finding resistance at 37065 points, Nandish Shah, senior derivative and technical analyst at HDFC Securities, said. He added that if this level is breached, the index is seen moving towards 37240 points. Support for the index is seen at 36400 points, Shah said. Moving forward, 37530 points would be a key level to watch out for, he said.
Thursday, shares of domestic information technology companies surged with the Nifty IT index rising to its highest level since Jul. 23 after the US Federal Reserve Wednesday cut the federal funds target range by 25 basis points, as had been widely expected, to 4.00-4.25%, the first time the US central bank has cut rates in 2025. Fed Chair Jerome Powell also guided for more rate cuts in the remainder of the year amid concerns about a hiring slowdown and weakness in the labour market. With Indian IT companies earning a major part of their revenue from the US, lower interest rates could help revive discretionary spending by US clients. This comes at a time when the industry has been facing weak spending by clients amid the US tariff-related uncertainty.
HSBC Global Investment Research in a report Wednesday said US clients of Indian IT companies are expected to continue to report strong earnings in the coming quarters, which in turn will lead to higher IT spends. However, the brokerage expects a gross deflationary impact of 8-10% from artificial intelligence on IT services, which is likely to be realised over 3-4 years as deals come up for renewal.
The brokerage sees a push-and-pull between this deflationary impact and macroeconomic tailwinds in 2026, and expects 5-6% growth in IT services in the financial year 2026-27 (Apr-Mar). Software companies continue to grow at this stage, which indicates that agentic AI is still not replacing traditional software, it said.
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Following are the resistance and support levels for key IT stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Coforge | 1,795.30 | 1.80 | 1,843.70 | 1,767.90 |
| HCL Technologies | 1,467.40 | 0.00 | 1,504.90 | 1,445.30 |
| Infosys | 1,540.20 | 1.00 | 1,568.40 | 1,506.00 |
| L&T Technology Services | 4,345.40 | 3.10 | 4,448.90 | 4,276.50 |
| LTIMindtree | 5,509.50 | 3.30 | 5,604.80 | 5,429.80 |
| Mphasis | 2,993.80 | 3.10 | 3,034.30 | 2,950.70 |
| Persistent Systems | 5,506.00 | 1.80 | 5,642.70 | 5,407.70 |
| Tata Consultancy Services | 3,169.20 | 1.10 | 3,201.10 | 3,128.10 |
| Tech Mahindra | 1,553.80 | 1.90 | 1,566.70 | 1,535.10 |
| Wipro | 255.88 | 1.60 | 259.00 | 253.10 |
| Nifty IT | 36578.25 | 1.30 | 37041.10 | 36138.60 |
| Nifty 50 | 25327.05 | 0.90 | 25489.80 | 25204.90 |
| BSE Sensex | 82626.23 | 0.90 | 83189.60 | 82204.20 |
End
Reported by Arya S. Biju
Edited by Rajeev Pai
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