IT Stocks Outlook
Seen to consolidate more in near term; US CPI data eyed
This story was originally published at 20:50 IST on 4 September 2026
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MUMBAI – Information technology stocks are expected to consolidate in the near term, with the Nifty IT index seen moving in a 2000-point range, analysts said. The sectoral index has been moving in the 30500–32000 points range for the past six weeks. Analysts expect this to continue in the near-term.
The sentiment for IT stocks may continue to be negative after stronger-than-expected US jobs data revived the prospect that the US Federal Reserve could raise interest rates in the coming months. US non-farm payrolls rose by 162,000 in August, way above the 53,000 estimated by economists surveyed by Dow Jones Newswire. The unemployment rate was unchanged at 4.1%.
A higher interest rate in the US would mean lower discretionary spending by US-based clients, from whom Indian IT companies earn a major part of their revenues. However, analysts do not expect a sharp correction in these stocks reacting to the payroll print. There is still the US consumer price index due next week, which will give further cues to the central bank's rate trajectory, they said. Further, US President Donald Trump said the strong jobs number underscored the strength of the US economy and the need for the Federal Reserve to lower interest rates.
Friday, the Nifty IT closed 0.5% lower at 30695.10 points. The index declined nearly 2% on week, compared to the around 1?ll in both the Nifty 50 and BSE Sensex. The index has been moving in the 30500–32000 points range for the past six weeks. This will continue till late September and early October, when companies start giving commentary on the September quarter earnings, Rishabh Vasa, research analyst covering the sector at Indsec Securities & Finance, said. Within the large-caps, he prefers Tech Mahindra Ltd. and LTM Ltd. and in the mid-cap space, he prefers Persistent Systems Ltd. and Coforge Ltd.
In the small-caps, Vasa said Happiest Minds Technologies Ltd. is now trading at a good price to enter. The stock has been under pressure recently after it announced a merger with ITC Infotech Ltd., a wholly-owned subsidiary of ITC Ltd. to create a global technology services company, with the combined entity targeting revenues of $1 billion by the financial year 2027-28 (Apr-Mar). The new entity's business will be diversified as compared to Happiest Minds, which focusses mainly on banking, financial services, and insurance, and health-based services, Vasa said. There will be new business risks as well, he added.
TOP HEADLINES
* Happiest Minds to merge into ITC arm; combined co aims $1 bln sales by FY28
* Analyst Concall: To see operational details of merger later - Happiest Minds
* Minister Goyal sees investment potential of $200 bln in data centre industry
* Coforge introduces AI launchpad, open-weight AI ecosystem for enterprises
* Coforge unveils new AI adoption fabric to boost clients' governance, ops
* Coforge expands partnership with Pegasystems for AI transformation
* HCL Tech, Transport for NSW to explore AI-powered traffic insights for India
* TCS to help METRO AG move to centralised tech systems via AI solutions
* Persistent Systems OKs limit of $1.25 bln for fund raising via equity, debt
* KFin Tech introduces AI platform ARYA to aid mutual fund transactions
* Mphasis signs pact with Japanese TechnoPro for AI-led transformation
* Blue Cloud Softech to acquire Caretech AI via share swap
* Wipro renews digital workplace services contract with ABB
* Tata Elxsi, Sarla Aviation sign MoU to develop Shunya aircraft
* CE Info partners ClarityX to launch geo-intelligence stack for lending
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 | 1972.80 | (-)2.10 | 2006.50 | 1945.50 |
| HCL Technologies | 1293.40 | (-)1.70 | 1345.50 | 1265.10 |
| Infosys | 1130.00 | (-)1.20 | 1155.30 | 1112.70 |
| L&T Technology Services | 3493.30 | (-)2.10 | 3570.80 | 3423.20 |
| LTM | 4554.00 | (-)2.60 | 4696.20 | 4474.20 |
| Mphasis | 2422.00 | (-)1.30 | 2532.70 | 2361.90 |
| Persistent Systems | 5643.00 | (-)4.00 | 5757.70 | 5576.70 |
| Tata Consultancy Services | 2304.00 | (-)1.60 | 2384.90 | 2261.90 |
| Tech Mahindra | 1596.90 | (-)2.70 | 1638.90 | 1565.90 |
| Wipro | 176.40 | (-)2.50 | 179.50 | 174.80 |
| Index | Levels | |||
| Nifty IT | 30695.10 | (-)1.90 | 31478.20 | 30265.20 |
| Nifty 50 | 23897.70 | (-)1.20 | 24043.00 | 23823.20 |
| BSE Sensex | 76515.43 | (-)1.00 | 77005.70 | 76270.30 |
End
US$1 = INR 94.48
Reported by Arya S. Biju
Edited by Shubhayan Bhattacharya
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