IT Stocks Outlook
Set for Range-Bound Trade Next Week Amid Divided Analyst Views
This story was originally published at 18:55 IST on 29 May 2026
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MUMBAI – Shares of information technology stocks are expected to move in a range next week, technical analysts said. While some analysts expect the positive momentum from the past two weeks to continue going forward, others expect the stocks to trade with a negative bias. With the earnings season winding up, movements in the domestic currency and company-specific news flows are seen dictating direction of these stocks in the coming weeks.
This week, the Nifty IT index rose 0.6%, compared with the 0.7% and 0.8?ll in the benchmark Nifty 50 and Sensex, respectively. This marked the second straight weekly gain for the sectoral index, rising around 5%. Friday, the index closed 0.6% higher at 29080.15 points, after hitting a one-month high of 29747.20 points intraday. All index constituents, barring Tata Consultancy Services and Oracle Financial Services Software, closed in the green Friday, up 0.1-2.4%.
Friday, shares of IT companies rose after Wipro expanded its partnership with US-based software company ServiceNow to scale artificial intelligence workflows across core enterprise functions. The rise in these stocks follows a sharp fall since the beginning of February, following which the valuations of most of them have become comfortable, said Sumit Pokharna, vice-president of fundamental research at Kotak Securities.
The IT index has been hovering in a range with immediate support at 27500 points and resistance of 31000 levels, said Vipin Kumaar, senior technical and derivatives analyst at Globe Capital Market. "We anticipate a sideways move with negative bias within the mentioned range," he added. Ruchit Jain, head of technical research at Motilal Oswal Financial Services, expects the sectoral index to see some sustainable up move only if it manages to cross 30000 points.
TOP HEADLINES
* Happiest Minds Jan-Mar consol PAT rises 52% QoQ, beats Street view
* TCS, French co Mistral to collaborate for AI models for enterprises
* Wipro expands deal with ServiceNow to include agentic AI workflow
* HCL Tech launches AI platform for finance ops on Google Cloud's Gemini
* Tata Elxsi launches AI-native software development platform for healthcare
* Mphasis launches enterprise agency platform Mphasis Tria, two product lines
* Mphasis issues revised disclosure on refinancing of promoter's 2021 loan
* TCS gets order from Sweden's SKF to transform its global operations via AI
* Zen Technologies launches smart border suite for hybrid warfare
* Brainbees Solutions Jan-Mar consol net loss narrows on year to INR 303 mln
* Tata Elxsi launches material intelligence solution ViTel
* Cyient Semiconductor arm to focus on execution at scale in FY27, mgmt says
* Crisil upgrades Netweb Tech's long-term rating to 'A+' from 'A'
* TCS launches SovereignSecure Cloud in Europe for public sector enterprises
* Persistent Systems partners with US-based Kong for AI services
* HCLTech partners with Pegasystems for AI-led enterprise system modernisation
* Cyient arm to issue NCDs, convertible debentures/shrs to EAAA India
* Persistent Systems' arm acquires PerSys Estonia to expand presence in Europe
* Wipro sets Jun 5 as record date for share buyback worth up to INR 150 bln
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 | 1,421.80 | 2.50 | 1,470.00 | 1,381.40 |
| HCL TECHNOLOGIES LTD | 1,183.80 | 1.70 | 1,198.90 | 1,169.50 |
| INFOSYS LTD | 1,160.90 | (-)1.20 | 1,231.20 | 1,118.40 |
| L&T TECHNOLOGY SERVICES LTD | 3,432.40 | 0.40 | 3,679.10 | 3,267.30 |
| LTM LTD | 4,061.60 | 1.30 | 4,212.00 | 3,936.40 |
| MPHASIS LTD | 2,271.40 | 2.20 | 2,329.20 | 2,231.00 |
| PERSISTENT SYSTEMS LTD | 5,194.30 | 4.50 | 5,335.40 | 5,079.40 |
| TATA CONSULTANCY SERVICES LTD | 2,258.90 | (-)2.50 | 2,375.00 | 2,177.00 |
| TECH MAHINDRA LTD | 1,483.90 | 4.30 | 1,516.70 | 1,443.70 |
| WIPRO LTD | 204.25 | 0.60 | 213.70 | 199.00 |
| Index | Levels | |||
| NIFTY IT | 29080.15 | 0.60 | 30068.50 | 28437.60 |
| NIFTY 50 | 23547.75 | (-)0.70 | 24196.50 | 23160.40 |
| BSE SENSEX | 74775.74 | (-)0.90 | 76825.90 | 73564.00 |
End
Reported by Arya S. Biju
Edited by Akul Nishant Akhoury
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