IT Stocks Outlook
Seen rising next wk too; Fed chair's address in focus
This story was originally published at 21:23 IST on 28 August 2026
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MUMBAI – Information technology stocks are expected to continue their upward trend in the coming week, extending gains for the second week, according to analysts covering the sector. Market participants will focus on US Federal Reserve Chair Kevin Warsh's address in Jackson Hole for cues on interest rates and the central bank's policy outlook.
The economic outlook and interest rates in the US are being closely watched by the Street as domestic IT companies earn a major part of their revenues from the US and any interest rate hike by the Fed will have an impact on already weak technology spending. Traders are currently pricing in no change to borrowing costs at the September meeting of the US Federal Open Market Committee but see a 45% chance that it will raise interest rates by at least 25 basis points by December, according to the CME FedWatch tool.
Friday, the Nifty IT index rose 3.5% to 31281.70 points, with all its constituents ending higher. The gains were led by Coforge, LTM, Tata Consultancy Services, and Persistent Systems, which rose 4-6%. Domestic IT stocks rose tracking overnight gains in their US peers following better-than-expected earnings and robust guidance from chip giant Nvidia Corp. and software company Salesforce that reassured optimism around demand for artificial intelligence infrastructure and related investments. While concern over AI-led revenue deflation for domestic IT players persists, some analysts believe they will ultimately benefit from growing adoption of AI, as these companies are crucial for enabling adoption of the new technology.
Over the week, the sectoral index rose over 2%, outperforming both the Nifty 50 and BSE Sensex, which fell 0.3% and 0.4%, respectively. Next week, the sectoral index is seen finding support at 30400 points and encountering resistance at 32700 points, Om Mehra, technical research analyst at SAMCO Securities, said. He expects sentiment around these stocks to be "neutral to bullish" in the near term.
TOP HEADLINES
* Coforge expands partnership with Pegasystems for AI transformation
* Wipro, Google Cloud expand partnership for enterprise adoption of AI
* Wacker Chemie sets up global capacity centre in Pune with HCL Tech
* CCI OKs Cyient to acquire 100% stake in US-based Tao Digital Solutions Inc
* Infosys report says returns on enterprise AI investments below expectations
* TCS signs deal worth 1.25 bln euros to industrialise AI across Porsche's ops
* LIC sheds 2% stake in Coforge via open mkt sale; holding reduces to 3.03%
* LTM completes Works Council consultations to buy Randstad businesses
* PRESS: Mid, small-cap funds make up 50% of total folio additions in Apr-Jul
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 | 2,014.60 | 6.50 | 2,086.20 | 1,875.20 |
| HCL Technologies | 1,316.10 | 1.00 | 1,357.60 | 1,269.20 |
| Infosys | 1,144.00 | 2.10 | 1,159.10 | 1,115.70 |
| L&T Technology Services | 3,568.70 | (-)1.00 | 3,630.50 | 3,513.70 |
| LTM | 4,675.00 | 4.20 | 4,824.40 | 4,426.20 |
| Mphasis | 2,455.00 | 1.00 | 2,510.90 | 2,397.10 |
| Persistent Systems | 5,875.00 | 3.70 | 6,053.70 | 5,587.70 |
| Tata Consultancy Services | 2,342.00 | 1.70 | 2,403.10 | 2,232.70 |
| Tech Mahindra | 1,640.90 | 3.60 | 1,671.00 | 1,583.00 |
| Wipro | 180.95 | 0.10 | 184.00 | 176.80 |
| Index | Level | |||
| Nifty IT | 31281.70 | 2.50 | 31875.40 | 30176.60 |
| Nifty 50 | 24175.65 | (-)0.30 | 24258.40 | 24035.50 |
| BSE Sensex | 77264.51 | (-)0.40 | 77573.30 | 76833.80 |
End
Reported by Arya S. Biju
Edited by Rajeev Pai
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