Indian IT stocks have been in the spotlight on Monday, with shares of Infosys, Wipro, and TCS rising more than 3.2% each. The Nifty IT index gained as much as 2.8% during the session.
Rally Trigger
The trigger came from U.S. Federal Reserve Chair Jerome Powell’s dovish comments at the Jackson Hole symposium, hinting at a possible rate cut in September, said SEBI-registered analyst Varunkumar Patel.
Markets are now pricing in an 84% – 87% chance of easing. Lower U.S. interest rates generally lead to foreign portfolio inflows into Indian IT companies, while also supporting a rebound in global tech spending, he said.
Stock watch
TCS: The stock holds a neutral trend with mixed signals from moving averages. Support can be seen at ₹3,050, while resistance lies in the ₹3,192 – ₹3,205 zone.
A breakout above ₹3,112 – ₹3,129 could open upside toward ₹3,200, but weakness below ₹3,050 would keep downside risks active, Patel said.
TCS shares are currently up 2.9% at ₹3,142.8, having declined more than 22% year-to-date (YTD).
Retail sentiment on Stocktwits turned ‘bearish’ from ‘neutral’ a day earlier.
Infosys: The setup leans neutral-to-bullish, with moving averages turning supportive. The analyst sees key support between ₹1,465 and ₹1,490, while resistance lies in the ₹1,550 – ₹1,585 level. Sustaining above ₹1,481 signals strength, and a move beyond ₹1,511 may push the stock higher beyond ₹1,550, he added.
Infosys shares rose 2.93% at ₹1,531.5. It has shed nearly 19% YTD.
Retail sentiment continues to remain ‘neutral’ on Stocktwits. It was ‘extremely bearish’ three months ago.
Wipro: The software services firm is showing the strongest technical setup, rated as a buy with multiple indicators aligned bullish. The relative strength index (RSI) at 57 suggests further room for gains.
Support lies at ₹240–₹245, while resistance is seen at ₹260–₹268, Patel said. A sustained move above ₹260 could extend momentum, aided by the rising 50-day moving average near ₹255.
Wipro’s stock pared some early gains to trade 2% higher at ₹253.61. The stock has lost 16% YTD.
Retail sentiment for Wipro on Stocktwits is ‘bullish’. It was ‘neutral’ a week earlier.
HCL Technologies: The analyst pegged the stock’s outlook at ‘neutral’ with mixed cues from moving averages. Support is seen near ₹1,445, while resistance is placed in the ₹1,510–₹1,540 range.
The bias stays weak below ₹1,505, though a breakout above ₹1,510 with strong volumes could trigger a recovery toward ₹1,550+, he added.
At the time of writing, the HCL Technologies was up 2.6% at ₹1,505.2. It has shed nearly 22% YTD.
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