IT Stocks Post 2% Jump: Analyst Forecasts Further Rally Amid Focus on Infosys, TCS, HCL Tech
IT Stocks Lead Market Surge on Friday
Information technology stocks led the market on Friday, with the Nifty IT index rising 2.2 percent to 29,550, even as benchmark indices traded flat-to-negative. Technical analysts believe the IT sector's recovery could extend towards the 31,280 level if the index sustains above the key 29,650 mark, making stocks such as Infosys, TCS, and HCL Technologies worth watching for short-term trading opportunities.
The rally comes amid renewed global enthusiasm around artificial intelligence-linked technology stocks. Asian technology shares advanced on Friday after Wall Street scaled fresh record highs overnight, aided by continued optimism around AI infrastructure spending and data-centre demand. Shares of Dell Technologies surged 39 percent in after-hours US trading after the company raised revenue and profit forecasts, citing strong demand for AI-optimised servers.
Key Performers
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| Stock | Percentage Change |
|---|---|
| Infosys | 3.7% |
| Tech Mahindra | 2.1% |
| Wipro | 1.6% |
| HCL Technologies | 1.5% |
| TCS | 0.4% |
| Coforge | 3.8% |
| Persistent Systems | 2.8% |
Infosys stock surged 3.7 percent to Rs 1,203 and emerged as the top gainer on the Nifty. Tech Mahindra shares rose 2.1 percent, Wipro gained 1.6 percent, HCL Technologies advanced 1.5 percent, and TCS added 0.4 percent. Among midcap IT stocks, Coforge climbed 3.8 percent, while Persistent Systems gained 2.8 percent.
According to Kunal Kamble, Senior Technical Research Analyst at Bonanza, the Nifty IT index has rebounded from a crucial support zone. It's forming an inverse head-and-shoulders pattern on hourly charts, a bullish technical setup often associated with a trend recovery. A breakout above the neckline of the pattern has already been triggered, potentially opening the door for further gains in heavyweight IT stocks that tend to move in line with the broader index.
Kamble said traders can maintain a constructive near-term view on the sector as long as the Nifty IT index remains above 29,650. Sustaining above that level could pave the way for a move towards 31,280. However, he cautioned that the ongoing rebound appears to be a technical recovery rather than confirmation of a new long-term uptrend. A fall below 28,800 could once again invite selling pressure across the sector and weaken the current recovery structure.
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Investor Takeaway
Investors should consider IT stocks for short-term trading opportunities, particularly those related to artificial intelligence-linked technology.
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