IT Stocks Outlook
Near-term trend cautious,but may see some recovery next wk
This story was originally published at 17:41 IST on 15 May 2026
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MUMBAI – While the broader trend for information technology stocks remains cautious in the near term with no major fundamental change, some analysts expect them to see a short-term recovery after the sharp selloff this week. However, technical analysts see any short-term recovery from current levels being temporary.
This week, the Nifty IT index fell nearly 6%, with the index closing in the red for four of the five sessions. On Friday, the index closed over 1% higher at 27716.90 points with all of its constituents except for Mphasis closing with gains. The rise in these stocks came after they entered a deep correction zone during the week, following OpenAI's announcement of a new company to help businesses build and deploy AI systems, Rishab Vasa, research analyst at Indsec Securities & Finance, said.
The OpenAI deployment company will extend OpenAI's ability to embed engineers specialised in frontier AI deployment, known as forward deployed engineers, into organisations working on complex problems in demanding environments, OpenAI said in a public notice Monday. The US-based company's foray into deployment services has stirred up concerns that this might become a competition for Indian IT companies, eating up their revenues and market share, according to analysts covering the sector.
Going forward, any short-term recovery from current levels may be treated as a "dead cat bounce" unless the Nifty IT index sustains above the 29750 points resistance zone, Rishabh Srivastava, a research analyst at Lakshmishree Investment and Securities Ltd., said. A move above the 29750 level could trigger temporary relief buying, but the broader trend remains negative. If the sectoral index falls below the 27000 points mark decisively on a weekly closing basis, the index may drift toward the support zone of 26189 points in coming weeks, he added.
TOP HEADLINES
* HCL Tech partners with Red Hat to launch AI Factory
* Inventurus Knowledge Jan-Mar consol PAT rises 12% QoQ to INR 2.06 billion
* eClerx Services Jan-Mar consol PAT rises 24.4% YoY to INR 1.89 billion
* Kotak Equities sees FY27 as lukewarm year for engg R&D cos in IT svcs sector
* Black Box acquires Brazil-based co 2S Inovacoes Tecnologicas
* LTM launches AI-based marketing solution built on Salesforce
* Experts highlight imbalance in AI business models, question profitability
* Sagility Jan-Mar consol PAT falls 3.7% QoQ to INR 2.58 billion
* Intellect Design in pact to revamp VantageOne Credit Union's lending ops
* TCS partners with Rezolve AI to offer agentic AI to retail enterprises
* L&T Tech, US co Emerson Electric partner to boost innovation in engineering
* LTM launches platform to help enterprises move to real-time operations
* Canada's Mainstreet Credit Union selects Intellect Design's AI platform
* Cyient arm launches 7 new gallium nitride power devices for Indian market
* Affle 3I Jan-Mar consol PAT rises a tad on qtr to INR 1.2 billion
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 | 1,282.10 | (-)6.30 | 1,328.40 | 1,252.00 |
| HCL TECHNOLOGIES LTD | 1,132.60 | (-)5.50 | 1,165.70 | 1,105.30 |
| INFOSYS LTD | 1,119.00 | (-)5.10 | 1,149.50 | 1,086.30 |
| L&T TECHNOLOGY SERVICES LTD | 3,495.10 | (-)8.10 | 3,563.90 | 3,438.10 |
| LTM LTD | 3,968.40 | (-)8.80 | 4,091.30 | 3,863.50 |
| MPHASIS LTD | 2,083.20 | (-)5.90 | 2,207.10 | 2,013.10 |
| PERSISTENT SYSTEMS LTD | 4,702.10 | (-)8.10 | 4,876.70 | 4,542.70 |
| TATA CONSULTANCY SERVICES LTD | 2,264.00 | (-)5.50 | 2,326.50 | 2,220.70 |
| TECH MAHINDRA LTD | 1,370.50 | (-)6.30 | 1,407.10 | 1,331.70 |
| WIPRO LTD | 190.00 | (-)4.00 | 193.30 | 187.10 |
| Index | Levels | |||
| NIFTY IT | 27716.90 | (-)5.70 | 28409.30 | 27126.40 |
| NIFTY 50 | 23643.50 | (-)2.20 | 23926.70 | 23468.70 |
| BSE SENSEX | 75237.99 | (-)2.70 | 76146.90 | 74685.00 |
End
Reported by Arya S. Biju
Edited by Avishek Dutta
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