Chart Check: IT stocks decline post Q2 nos. Do they still hold promise?

Most IT stocks have seen sharp correction post Q2 results. However, the medium-term outlook stays bullish as per their respective technical charts.

After a sharp run-up in the past few months, shares of information technology stocks are now witnessing a strong bout of profit booking by the investors. After slipping over 3 per cent on Thursday, the Nifty IT index was trading flat at 21,612 levels on Friday noon, with 4 constituents declining and 6 advancing.

According to analysts, for the short-term, most positives for the IT stocks are priced in. For instance, those at ICICI Securities, are concerned about the near-term prospects and suggest the euphoria around cloud and digital business segments needs a reality check. That said, for bottom-up investors,