IT Stocks Outlook
Seen volatile in coming weeks; value buying may continue
This story was originally published at 23:41 IST on 7 August 2026
Register to read our real-time news.Informist, Friday, Aug. 7, 2026
MUMBAI – Information technology stocks are expected to remain volatile in the upcoming weeks, continuing to react to global artificial intelligence and counter-AI trades than their fundamentals. Meanwhile, some analysts expect value buying in these stocks to continue, given their attractive valuations after the recent sharp fall.
Sentiment around these stocks also turned positive amid the unwinding of the crowded global AI stocks by global investors. Indian IT companies are still far from being pure-play AI firms, giving them a broader AI-defensive play status. However, despite the recent shift, most market participants exercise caution against declaring the AI boom is over.
Domestic IT companies staged a mixed show on top line in the June quarter due to the war in West Asia and macroeconomic uncertainties hurting demand and leading to delays in deal closures and ramp-ups, Kotak Institutional Equities said in a note Thursday. While some impact of the ongoing geopolitical challenges is expected in the ongoing quarter, the brokerage believes that uncertainties have reduced, which will help drive away delays. It now anticipates up to 2% sequential growth for Tier-1 IT companies in the September quarter.
Nuvama Institutional Equities noted that the demand trends remained largely unchanged in the June quarter, with healthy execution of existing deal pipelines offsetting a cautious discretionary spending environment. IT companies broadly delivered in-line growth while FY27 guidance remained intact for most Tier-1 players, excluding Infosys. Mid-tier IT services companies continued to outperform their larger peers. The brokerage expects the growth momentum to be better in the September quarter.
Friday, the Nifty IT index closed over 1% higher at 31547.70 points. Over the week, the index gained nearly 3% compared to the 0.5% and 0.8% gains in the BSE Sensex and Nifty 50 respectively. "Nifty IT index has reached an important price resistance of 32000 levels," Vipin Kumar, assistant vice president-research at Globe Capital Market said. "A decisive close above 32000 (points) could lead it towards further up move up to 32800 levels in the near term. Conversely, fall below 30800 might drag it towards 29500 spot levels in the near term."
Looking ahead, investors will closely monitor upcoming US labour market and inflation data for further clarity on the US Federal Reserve's policy trajectory.
TOP HEADLINES
* Sonata Software Apr-Jun consol PAT falls 17% QoQ to INR 1.08 billion
* Analyst Concall: Firstsource reaffirms FY27 sales target on current momentum
* Earnings Review: Firstsource Q1 PAT fell, misses Street's estimate
* HCL Tech gets status as OpenAI Advanced Partner
* Infosys to transform IT ops of footwear co Crocs via AI-first platforms
* After mixed show Q1, Kotak Equities sees top IT cos sales rising up to 2% QoQ
* Earnings Review: RateGain Travel Tech PAT, revenue more than double YoY
* LTM partners with Chainguard to strengthen software supply chain
* Inventurus Knowledge arm to divest shares in Abridge AI for $10 million
* Inventurus Knowledge Q1 PAT falls on qtr as costs grow faster than sales
* Earnings Review: eClerx Services PAT, revenue miss Street's estimates
* Wipro, Rubrik launch new service for enterprise cyber resilience
* Earnings Outlook: Deal ramp-ups, strong demand to aid eClerx Services Q1 PAT
* Earnings Outlook: BFSI to drive Firstsource Q1 net profit up 10% on quarter
* Persistent Systems gets shareholders' nod for Nagarro acquisition
* Rashi Peripherals Apr-Jun consol PAT rises 67.6% YoY to INR 1.03 billion
* Infosys arm deploys Finacle system to transform HDFC Bank's wealth ops
* Intellect Design deploys eMACH.ai treasury suite for SBS Bank transition
* Capillary Tech posts INR 95.52 million consol loss in Apr-Jun vs PAT yr ago
* Analyst Concall: Persistent Systems sees wage impact partly offset in Q2
* HCL Tech completes purchase of Hewlett Packard's Telco Solutions business
* Earnings Review: Persistent's Q1 PAT falls as costs outpace revenue growth
* Earnings Outlook: Latent View Q1 profit seen down due to client insourcing
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 | 1,776.00 | 3.20 | 1,827.00 | 1,740.00 |
| HCL TECHNOLOGIES LTD | 1,356.60 | 0.70 | 1,392.20 | 1,310.20 |
| INFOSYS LTD | 1,175.10 | 4.00 | 1,198.60 | 1,143.80 |
| L&T TECHNOLOGY SERVICES LTD | 3,598.70 | 1.20 | 3,706.60 | 3,497.40 |
| LTM LTD | 4,658.10 | 6.80 | 4,775.40 | 4,483.40 |
| MPHASIS LTD | 2,475.00 | 5.70 | 2,552.30 | 2,366.50 |
| PERSISTENT SYSTEMS LTD | 5,475.00 | (-)1.30 | 5,651.30 | 5,360.30 |
| TATA CONSULTANCY SERVICES LTD | 2,452.70 | 3.70 | 2,511.20 | 2,345.80 |
| TECH MAHINDRA LTD | 1,635.00 | (-)1.00 | 1,697.50 | 1,603.10 |
| WIPRO LTD | 187.53 | 2.10 | 189.90 | 184.50 |
| Index | Levels | |||
| NIFTY IT | 31547.70 | 2.70 | 32216.50 | 30713.10 |
| NIFTY 50 | 24570.65 | 0.80 | 24682.30 | 24467.00 |
| BSE SENSEX | 78499.17 | 0.50 | 78924.90 | 78164.20 |
End
Reported by Arya S. Biju
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000/+91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
