IT Stocks Outlook
May rise near term; Nifty IT resistance seen at 39570 pts
This story was originally published at 19:01 IST on 2 January 2026
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NEW DELHI – Stocks of information technology firms are expected to rise in the near term amid improving valuations after a subdued period, expectations of improvement in enterprise client spending following interest rate cuts by the US Federal Reserve, and growing demand for artificial intelligence-led services, according to analysts.
"After a prolonged phase of correction, consolidation, and relative underperformance through most of 2025, large-cap IT stocks are beginning to show early signs of bottoming out," said Sugandha Sachdeva, founder of SS WealthStreet. She added that the IT sector appears well-placed for a potential turnaround in 2026 with easing global monetary conditions, currency support, and improving technical structures of companies. Sachdeva, however, clarified that she does not see the Indian rupee edging past the 91-a-dollar level and expects the currency to largely appreciate in the near term.
Sachdeva pegged 37680 points as the support level for the Nifty IT index in the coming week and 39570 points as the resistance level.
On Friday, the Nifty IT index rose 148.80 points, or 0.4% to end at 38320.30 points. In the first two sessions of 2026, the index rose 1.2?ter losing over 4% in six straight sessions since Dec. 23. Overall, the index fell 12.5% in calendar year 2025, while the benchmark Nifty 50 rose 10.5% in the year.
Sachdeva is bullish on large-cap IT firms compared to mid=cap companies, given the former category's relative underperformance in the last two years alongside the stability offered by constituent companies. Her top picks include Tata Consultancy Services and HCl Technologies.
Analyts expect seasonal factors to weigh on sequential revenue growth of IT companies for the December quarter with furloughs in line with the past trend. "Overall demand is largely unchanged, with restrained discretionary spending, cautious client stance amid macro uncertainty, and ongoing AI-led tech shifts continuing to influence growth momentum," Emkay Global Financial Services Ltd. said in an earnings-preview report released Thursday. Tier-1 firms such as HCL Technologies, Wipro, and LTIMindtree would lead sequential revenue growth for the December quarter, while other tier-1 companies would report flattish growth, the brokerage added.
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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 LTD | 1650.30 | (-)1.40 | 1681.80 | 1612.60 |
| HCL TECHNOLOGIES LTD | 1640.20 | (-)1.30 | 1654.00 | 1618.20 |
| INFOSYS LTD | 1640.40 | (-)1.00 | 1653.10 | 1621.10 |
| L&T TECHNOLOGY SERVICES LTD | 4406.60 | (-)2.50 | 4466.70 | 4352.90 |
| LTIMINDTREE LTD | 6067.00 | 0.50 | 6181.00 | 5995.00 |
| MPHASIS LTD | 2807.20 | (-)1.50 | 2861.30 | 2773.10 |
| PERSISTENT SYSTEMS LTD | 6289.50 | (-)0.20 | 6382.50 | 6182.50 |
| TATA CONSULTANCY SERVICES LTD | 3250.70 | (-)0.90 | 3276.30 | 3206.70 |
| TECH MAHINDRA LTD | 1612.00 | (-)0.00 | 1628.20 | 1593.80 |
| WIPRO LTD | 269.00 | 1.00 | 275.40 | 262.90 |
| NIFTY IT | 38320.30 | (-)0.70 | 38528.50 | 37981.30 |
| NIFTY 50 | 26328.55 | 1.10 | 26483.90 | 26040.70 |
| BSE SENSEX | 85762.01 | 0.90 | 86290.60 | 84804.60 |
End
Reported by Shakshi Jain
Edited by Tanima Banerjee
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