IT Stocks Outlook
Relief rally may continue next week, Q1 earnings eyed
This story was originally published at 21:24 IST on 10 July 2026
Register to read our real-time news.Informist, Friday, Jul. 10, 2026
MUMBAI – Information technology stocks may continue their relief rally in upcoming sessions with stock-specific movements expected on June quarter earnings announcements and management commentaries, according to analysts. However, a sharp rise is not expected as concern around weak discretionary spending and the demand environment persist, dimming the long-term outlook for the sector, they said.
"The Nifty IT index rose gradually this week after forming a 'Hammer' candlestick pattern around the price support zone of 25500–26000 (points) in the previous week. The hammer pattern, followed by a green candle, strengthens our view of a short-term relief rally that could take the index up to the 29000 level," Vipin Kumaar, assistant vice-president, technical and derivatives, at Globe Capital Market, said. However, the overall chart structure remains negative, with multiple resistance levels on the higher side, he added.
Friday, the Nifty IT index closed at 28010.35 points, up 2% from Thursday. Kumaar expects the index to find support at 27000 points and meet resistance at 29000 points in the coming week. Sentiment around the stocks improved after sector bellwether Tata Consultancy Services released its June quarter earnings. The sequential growth of nearly 14% in the company's annualised artificial intelligence revenue has led investors to project the same outcome from other companies, Sumit Pokharna, vice-president, research, at Kotak Securities told Informist.
The company's consolidated net profit for the quarter fell 2.7% on quarter to INR 133.49 billion, missing the Street's view of INR 134.03 billion. Its revenue, on the other hand, grew 2.2% sequentially to INR 722.25 billion, surpassing analysts' estimate of INR 718.05 billion. The company anticipates a recovery in the life sciences and healthcare segment in the September quarter and is positive on improvement in revenue contribution from the manufacturing segment, the management said in a post-earnings call with analysts.
Large-cap IT player LTM will announce its June quarter earnings Saturday. Despite a low-single-digit rise in its revenue, LTM is expected to report a 9% sequential rise in its bottom line driven by improved utilisation and operational efficiencies. The impact of wage hikes during the quarter is also expected to be limited by benefits from depreciation of the rupee against the dollar, according to analysts. Market participants will also watch for the quarterly earnings announcement and management commentaries by HCL Technologies, Tata Elxsi, L&T Technology Services, Tech Mahindra, Wipro, and Tata Technologies, all of which are scheduled next week.
TOP HEADLINES
* Several brokerages cut TCS target price, positive on Q2 recovery, AI revenue
* HC refuses to stay order that Google infringed trademark in advt programme
* Earnings Outlook: Tech Mahindra to outshine large-cap peers in Q1 PAT growth
* Analyst Concall: TCS sees sales recovery in healthcare, life sciences in Q2
* Earnings Outlook:Operational efficiency, higher utilisation to aid LTM Q1 PAT
* Google moves HC to nix ruling that co infringed trademarks in advt programme
* Earnings Review: TCS Q1 PAT down nearly 3% QoQ on one-time cost, misses view
* Gujarat data centre policy eyes INR-6-tln invest, 7.5 GW capacity by 2029
* ICRA places Persistent Systems on rating watch, retains 'AA+' rating
* Bombay HC refuses to bar Cognizant from using logo on Atyati Tech's plea
* HCL Tech says Jaspersoft acquisition added to co's data management portfolio
* HCL Tech gets certification to help enterprises scale up AI adoption
* Earnings Outlook: Wage hike to drag down TCS PAT, sales seen up on weak rupee
* Zen Tech says arm's drone propulsion mfg capacity hits 300,000 units/year
* Hexaware Tech partners with SmartRent to drive AI-led transformation
* LTM launches BlueVerse RightLogic to help enterprises gauge AI-related risks
* Info Edge rolls out AI tools on recruitment platform
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 | 1,503.80 | 2.70 | 1,538.60 | 1,472.60 |
| HCL Technologies | 1,164.10 | 2.20 | 1,207.70 | 1,131.70 |
| Infosys | 1,068.00 | 2.00 | 1,101.30 | 1,048.10 |
| L&T Technology Services | 3,278.20 | 2.30 | 3,329.10 | 3,207.50 |
| LTM | 4,037.20 | 7.40 | 4,190.00 | 3,823.60 |
| Mphasis | 2,321.90 | 1.10 | 2,396.60 | 2,254.60 |
| Persistent Systems | 5,053.90 | 7.90 | 5,169.80 | 4,845.00 |
| Tata Consultancy Services | 2,069.00 | (-)1.20 | 2,157.70 | 2,020.30 |
| Tech Mahindra | 1,454.80 | 3.20 | 1,493.30 | 1,426.10 |
| Wipro | 175.46 | (-)0.40 | 178.10 | 173.70 |
| Index | Level | |||
| Nifty IT | 28010.35 | 2.10 | 28676.20 | 27537.10 |
| Nifty 50 | 24206.90 | (-)0.30 | 24293.30 | 24077.10 |
| BSE Sensex | 77569.39 | (-)0.30 | 77832.40 | 77189.10 |
End
US$1 = INR 95.3250
Reported by Arya S. Biju
Edited by Rajeev Pai
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