IT Stocks Outlook
Nifty IT seen tracking benchmark mkts with recovery bias
This story was originally published at 20:47 IST on 9 January 2026
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NEW DELHI – The Nifty IT index is expected to follow the overall market's direction in the coming week with a recovery bias. Further, movement in individual stocks will likely be based on December quarter earnings, said Sugandha Sachdeva, founder of equity and commodity research firm SS WealthStreet.
The Nifty IT index is likely to find support at lower levels of 37300 points, Sachdeva said. It is expected to counter stiff resistance at 38740 points, she added.
On Friday, the Nifty IT index ended 0.3% higher at 38027.20 points. However, during the week, the sectoral index fell 0.8%, though much lower than the decline in the benchmark Nifty 50, which fell 2.5%.
Sector bellwether Tata Consultancy Services Ltd. and its peer HCL Technologies Ltd. will kick off the earnings season for the IT industry on Monday. Tata Elxsi Ltd. will follow, with its December quarter results announcement on Tuesday. While TCS is expected to report subdued earnings for the December quarter, HCL Technologies is likely to turn in a sector-beating performance for the quarter with a double-digit sequential rise in its bottom line. Both the companies are expected to post a low single-digit rise in their consolidated top line for Oct-Dec on a sequential basis.
Sachdeva has a positive view on HCL Tech for the coming week. It could test the INR 1,695 to INR 1,700 level before seeing some profit booking, she said. "The trend if I see, it is largely positive. Volumes are healthy, the stock is sustaining above its key averages, and expectations for earnings are also positive...even barring the short-term volatility after the results, it would all depend on the management guidance as well, but the trend seems largely positive even as the IT index is not looking very strong," she added. Meanwhile, TCS may see some consolidation next week, according to Sachdeva.
Overall, companies in the IT sector are expected to report lower sequential revenue growth for the December quarter, which is traditionally a weaker period for the industry due to fewer working days and furloughts. The bottom-line growth of these companies is expected to improve marginally on quarter, partly due to the depreciation of the rupee, according to analysts.
"Overall demand is largely unchanged, with restrained discretionary spending, cautious client stance amid macro uncertainty, and ongoing AI (artificial intelligence)-led tech shifts continuing to influence growth momentum," Emkay Global Financial Services Ltd. said in its earnings preview report for the IT sector.
This earnings season, investors will keenly await management commentary on the IT budget of clients for the calendar year 2026 and the possibility of recovery in discretionary spending. Among other areas, changes in revenue and margin guidance for 2025-26 (Apr-Mar), impact from implementation of the new labour codes, deal pipeline and ramp-ups, project deferment and/or cancellation, pricing change, and contribution from recent acquisitions will be in focus.
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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 | 1681.60 | 1.90 | 1708.60 | 1634.40 |
| HCL TECHNOLOGIES LTD | 1661.40 | 1.30 | 1689.10 | 1633.30 |
| INFOSYS LTD | 1614.10 | (-)1.60 | 1641.80 | 1593.20 |
| L&T TECHNOLOGY SERVICES LTD | 4355.40 | (-)1.20 | 4476.70 | 4277.90 |
| LTIMINDTREE LTD | 6037.00 | (-)0.50 | 6146.00 | 5945.00 |
| MPHASIS LTD | 2838.20 | 1.10 | 2885.70 | 2771.50 |
| PERSISTENT SYSTEMS LTD | 6413.50 | 2.00 | 6528.50 | 6292.50 |
| TATA CONSULTANCY SERVICES LTD | 3207.80 | (-)1.30 | 3248.20 | 3170.80 |
| TECH MAHINDRA LTD | 1582.20 | (-)1.90 | 1617.20 | 1560.60 |
| WIPRO LTD | 261.95 | (-)2.60 | 265.60 | 258.60 |
| NIFTY IT | 38027.20 | (-)0.80 | 38427.70 | 37660.90 |
| NIFTY 50 | 25683.30 | (-)2.50 | 26066.60 | 25431.40 |
| BSE SENSEX | 83576.24 | (-)2.60 | 84798.90 | 82791.00 |
End
Reported by Shakshi Jain
Edited by Tanima Banerjee
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