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Informist, Thursday, Apr. 30, 2026

MUMBAI – Technical analysts expect information technology stocks to see some recovery next week after their sharp fall since early February. While near-term earnings cuts remain a risk amid concerns over artificial intelligence-led revenue deflation, the downside to current levels is limited for the better-positioned names, Kotak Institutional Equities said in a report. 

Most major sectoral players have announced their March quarter earnings in the past three weeks. Most company management teams acknowledged a potential AI-led revenue deflation, with HCL Technologies putting a number on the deflation level for the first time, at 3–5% for the industry. "The market had been pricing marginal recovery (discretionary spending) in FY2027; the (March quarter) results confirm there is no recovery in sight," Kotak said. "Demand weakness was visible by March 2026. Competitive intensity was a known concern. What 4QFY26 (Jan-Mar) did was reinforce and quantify."

However, in two to three years, analysts expect the deflationary phase of generative AI to give way to new AI implementation work in data architecture, agentic workflow deployment and AI governance that did not exist as a billable category. While not all large companies are expected to capture this, mid-tier companies are likely to be better positioned, with Persistent Systems leading the way, Kotak said. 

On a weekly basis, the Nifty IT index gained around 3%, compared to the 0.4% and 0.3% rise in the benchmark Nifty 50 and BSE Sensex. Friday, the sectoral index closed 0.4% higher at 29353.90 points. Next week, the index is expected to find immediate resistance at 29700–30200 points, Yadnesh Shendge, technical analyst and financial risk strategist at Nirmal Bang Institutional Equities, said. Below 29700 points, he expects the index to find support at 28800 points. Next week, Tata Technologies, Latent View Analytics, Coforge, KPIT Technologies, Birlasoft, Hexaware Technologies, and Intellect Design Arena will detail their March quarter earnings. 

TOP HEADLINES

* Newgen Software Jan-Mar consol PAT surges over 69% QoQ to INR 1.06 bln
* Earnings Outlook:Strong sales, core ops recovery to boost Tata Tech's Q4 PAT
* Earnings Review: Mphasis Q4 PAT posts double-digit growth, first in 6 yrs
* Analyst Concall: Mphasis eyes QoQ growth in tech, media ops in coming qtrs
* Earnings Review: Mphasis Q4 consol PAT up in double digits, first in 6 years
* HCL Tech to partner with DP World Tour for golf tournament
* IPO Alert: OnEMI Technology raises INR 2.78 bln from anchor investors
* Netweb Technologies launches unified data platform Tyrone ParallelStor Velox
* Analyst Concall: Eternal says on track to add 3,000 dark stores by March
* Earnings Review: Eternal Q4 PAT up 4-fold, beats Street; revenue misses view
* LIC buys 54.46 mln shares or 2% stake in HCL Tech in a year
* WhatsApp to implement SIM binding, block device IDs in digital arrest cases
* Work begins at Google's Visakhapatnam AI hub, its largest invest in India
* SC notice to National Informatics Centre Svcs in message gateway award case
* LTM launches BlueVerse Studio in Bengaluru to drive enterprise AI adoption
* Andhra Pradesh govt to allot 20 acres to Infosys at INR 0.99 for IT campus
* Earnings Review: Canara Robeco AMC Q4 PAT steady as expenses outpace income
* Hexaware Tech to pay INR 8.50 per share interim dividend; record date May 5
* Earnings Outlook:Mphasis Q4 sales, PAT seen up QoQ on deal ramp-ups, BFS ops
* TCS, Siemens Energy AG in AI partnership to drive intelligent operations
* Tata Elxsi appoints Nalin Rana as CFO from May 30
* Sonata Software to appoint Rajsekhar Datta Roy as CEO for 3 yrs from May 9
* Earnings Outlook: Rapid expansion to help Eternal post strong Q4 numbers
* Pine Lab board approves 100% stake purchase in Shopflo Technologies
* Tanla Platforms Jan-Mar consol net profit rises 2% on qtr to INR 1.34 bln
* JSW Motors and Tata Elxsi join hands for new tech centre in Pune
* Wipro, Kongsberg join hands to deploy AI solutions for energy sector
* Intellect Design partners with Myanmar bank on integrating AI solutions
* Zensar Tech Jan-Mar consol net profit rises 5.4% QoQ to INR 2.11 billion
* INTERVIEW: Cyient likely to ink M&A deal in Q1, company executive says

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:

End

Reported by Arya S. Biju

Edited by Saji George Titus

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