IT Stocks Outlook
Views divided on direction next week; AI worries to weigh
This story was originally published at 18:20 IST on 27 February 2026
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MUMBAI – Analysts are divided in their views on the direction of information technology stocks in the coming week after the recent correction. While some technical analysts expect IT stocks to see some pullback from their oversold position, others see them remaining under pressure amid persisting concerns about artificial intelligence-led disruptions.
Domestic IT stocks remained under pressure during the month, weighed down by concerns about AI-led disruptions, US discretionary spending cuts, and guidance downgrades. In February, the Nifty IT index fell nearly 20%, compared with an around 1?cline in the benchmark indices. So far this year, the sectoral index has lost over 19%.
Following this sharp correction, the sector had entered into oversold territory on multiple technical indicators. Some analysts now expect these stocks to see some technical pullback from these levels. After falling for five straight sessions, the Nifty IT index rose in the last three sessions, gaining nearly 2%. However, despite this selective low-level buying in IT stocks, some analysts expect these stocks to remain under pressure with the broader trend remaining subdued.
In the week ended Friday, the Nifty IT index fell 4.4% to 30603.85 points. The Nifty IT index is expected to find support at 30300–30200 points in the coming week, Osho Krishan, chief manager, technical and derivatives at Angel One, said. On the higher end, the index is expected to face resistance at the 31600 points level, where Krishan expects a breather in the market.
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The 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 | 1185.80 | (-)11.60 | 1253.90 | 1148.10 |
| HCL TECHNOLOGIES LTD | 1389.10 | (-)3.30 | 1414.80 | 1369.20 |
| INFOSYS LTD | 1300.10 | (-)3.90 | 1350.60 | 1269.00 |
| L&T TECHNOLOGY SERVICES LTD | 3512.40 | 3.40 | 3675.70 | 3231.10 |
| LTIMINDTREE LTD | 4462.00 | (-)8.70 | 4729.30 | 4301.30 |
| MPHASIS LTD | 2296.50 | (-)3.30 | 2385.80 | 2241.60 |
| PERSISTENT SYSTEMS LTD | 4733.00 | (-)7.10 | 5003.00 | 4577.00 |
| TATA CONSULTANCY SERVICES LTD | 2637.40 | (-)1.80 | 2713.20 | 2588.20 |
| TECH MAHINDRA LTD | 1357.80 | (-)6.80 | 1430.50 | 1317.70 |
| WIPRO LTD | 200.96 | (-)4.20 | 205.60 | 197.70 |
| Index | Levels | |||
| NIFTY IT | 30603.85 | (-)4.40 | 31578.40 | 30058.80 |
| NIFTY 50 | 25178.65 | (-)1.50 | 25600.60 | 24930.40 |
| BSE SENSEX | 81287.19 | (-)1.80 | 82651.20 | 80477.20 |
End
US$1 = INR 90.97
Reported by Arya S Biju
Edited by Saji George Titus
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