- IT Stocks Decline: IT stocks like Infosys, TCS, HCL Tech, and LTIMindtree have dropped up to 37% from their December highs, and are considered oversold on daily charts.
- Nifty IT Index Performance: The Nifty IT index fell by over 22% from its December 2024 high, while the Nifty dropped 11.6% in the same period.
- Top Losers in Nifty IT: LTIMindtree was the biggest loser, down over 37%, followed by Mphasis (-32%), and Infosys, TCS, and HCL Technologies (-23% each).
- Selling Pressure: Foreign Portfolio Investors (FPIs) have been consistently selling IT stocks, with a net sale of Rs 6,934 crore in the first half of March.
- Market Recovery: While the broader market (Nifty 50) rose by 5% from its March low, the Nifty IT index gained only 3.3%.
- Relief Rally Possibility: Charts suggest a potential relief rally for IT stocks. Key levels to watch:
- Nifty IT Index: Support at 36,680, 36,450, 36,150; Resistance at 38,200, 38,350, 38,640, 39,300.
- Infosys: Support at Rs 1,565, Rs 1,520; Resistance at Rs 1,637, Rs 1,662, Rs 1,680.
- TCS: Support at Rs 3,462, Rs 3,380; Resistance at Rs 3,607, Rs 3,687, Rs 3,746, Rs 3,786.
- HCL Technologies: Support at Rs 1,550, Rs 1,519; Resistance at Rs 1,645, Rs 1,660.
- LTIMindtree: Support at Rs 4,450, Rs 4,355; Resistance at Rs 4,678, Rs 4,824, Rs 4,850.
- Outlook: Positive momentum expected for IT stocks if they hold above key support levels and break certain resistance levels.
