Down 15% from record high; Nifty IT, 5 tech shares can dip 15% more: charts

Technical outlook on Nifty IT, large-cap technology stocks: The IT index along-with Infosys, TCS, HCL Technologies, Tech Mahindra and Wipro look poised for further losses from present levels.

After having shown resilience in the early part of the market fall, the Nifty IT index now seems to be losing ground fast. The IT index has tanked over 15 per cent from its high of 46,089 hit on December 13, 2024. In the same period, the NSE Nifty 50 index has shed 9 per cent.  The overall market weakness, coupled with fears of a negative impact of Donald Trump triggered tariff war on the US economy has dampened the sentiment at IT counters. Recent US inflation reading showed that consumer prices grew at the fastest monthly pace since August 2023, and could spike higher given the prospects of global trade war. As such, a slowdown in the economy amid rising inflation has triggered fears of stagflation in the US.  Growth concerns in the US, the largest economy, do not only have negative implications on global growth, but also on IT companies in particular, who generate business from the US. As such, here's a technical outlook on the Nifty IT index and some of its key components.    Nifty IT index  Current Level: 39,220  Downside Risk: 14.7%  Support: 36,850  Resistance: 39,525; 40,180  The Nifty IT index is seen trading below the lower-end of the Bollinger Bands on the daily scale, which is a bearish sign. The near-term bias for the IT index is expected to remain weak as long as the index remains below 39,525 levels. On the downside, the index seems on course to test the 20-MMA (Monthly Moving Average) support at 36,850; below which a slide to 33,440 levels seems likely. The overall bias is likely to remain negative as long as the index sustains below 40,180. CLICK HERE FOR THE CHART  Infosys  Current Price: Rs 1,767  Downside Risk: 15.1%  Support: Rs 1,753; Rs 1,730; Rs 1,670  Resistance: Rs 1,785; Rs 1,825  Infosys was seen trading below its 200-DMA (Daily Moving Average) for the second straight trading session today. The near-term bias for Infosys is likely to remain negative as long as the stock trades below Rs 1,825 levels; immediate resistance for the stock can be anticipated around the 200-DMA at Rs 1,785. On the downside, the stock seems on course to test Rs 1,600 levels; below which a slide to Rs 1,500 cannot be ruled out. Interim support for the stock exists at Rs 1,753, Rs 1,730 and Rs 1,670 levels. CLICK HERE FOR THE CHART    TCS  Current Price: Rs 3,637  Downside Risk: 12.8%  Support: Rs 3,470; Rs 3,400  Resistance: Rs 3,730; Rs 3,790; Rs 3,855  TCS has witnessed an accelerated fall in recent times; the stock is down nearly 12 per cent thus far in February. The stock is seen trading below its 20-MMA and the 100-WMA (Weekly Moving Average) for the first time since June 2023. Technical chart shows that the stock seems on course to test the 200-WMA support, at Rs 3,470 levels, a key moving average the stock has held since May 2017. CLICK HERE FOR THE CHART  The long-term chart indicates that the stock can potentially extend the fall and test levels of Rs 3,400 and Rs 3,170 on the downside. The near-term bias is likely to remain negative as long as the stock trades below Rs 3,730; above which resistance for the stock is seen at Rs 3,790 and Rs 3,855 levels.    HCL Technologies  Current Price: Rs 1,645  Downside Risk: 15.2%  Support: Rs 1,645; Rs 1,545  Resistance: Rs 1,665; Rs 1,684; Rs 1,707  HCL Technologies is likely to trade with a negative bias as long as the stock trades below Rs 1,665; above which key hurdles for the stock stand at Rs 1,684 and Rs 1,707 levels. On the downside, the stock is seen testing support at its 50-WMA at Rs 1,645 levels. Break and sustained trade below the same can trigger a fall towards Rs 1,495 and Rs 1,395 levels. Interim support for the stock can be anticipated around Rs 1,545 levels. CLICK HERE FOR THE CHART  Tech Mahindra  Current Price: Rs 1,600  Downside Risk: 7.5%  Support: Rs 1,540  Resistance: Rs 1,615; Rs 1,630; Rs 1,655  The near-term bias for Tech Mahindra is likely to remain negative as long as the stock trades below Rs 1,615; above which key hurdles for the stock exist at Rs 1,630 and Rs 1,655 levels. On the downside, the stock seems on course to test its 200-DMA support at Rs 1,540; below which a dip to Rs 1,480 seems likely. CLICK HERE FOR THE CHART    Wipro  Current Price: Rs 292  Downside Risk: 7.5%  Support: Rs 282; Rs 275  Resistance: Rs 296; Rs 303  Wipro is seen testing support at its 100-DMA, which also coincides with the 20-WMA support around Rs 290. Break and sustained trade below the same can trigger a fall towards the 200-DMA at Rs 270. Interim support can be anticipated around Rs 282 and Rs 275 levels. Resistance for the stock is seen at Rs 296 and Rs 303 levels. CLICK HERE FOR THE CHART