Infosys, HCL Tech fall below March lows; tech charts flag warning sign

Anand James, chief market strategist at Geojit Investments highlights that Infosys and HCL Technologies look weak on charts as both were trading below March lows and the lower-end of Bollinger Bands.

IT stocks extended losses and were down up to 5 per cent in Friday's intra-day trade after Infosys announced a weak guidance for FY27.  On the earnings front, Infosys reported 20.9 per cent year-on-year (YoY) growth in net profit at ₹8,501 crore, backed by 13.4 per cent YoY increase in revenue at ₹46,402 crore.  The IT major, however, guided a modest 1.5-3.5 per cent revenue growth in constant currency (CC) for FY27, lower than last year's 3-3.5 per cent outlook. Post results, Elara Capital retained a 'Buy' rating on the stock, with a lower target price of ₹1,530. Here's what other brokerages said about Infosys earnings  On the NSE, among the IT heavyweights - Infosys plunged 5 per cent. HCL Technologies and TCS were down around 3 per cent each. The Nifty IT index crashed nearly 4 per cent, while the benchmark Nifty 50 slipped around 1 per cent.  Since the start of the calendar year 2026, IT stocks have underperformed with TCS, Infosys and HCL Technologies down around 25 per cent thus far.  Going ahead, Anand James, chief market strategist at Geojit Investments and Om Mehra, technical research analyst at SAMCO Securities decodes likely trading strategy for Infosys, TCS and HCL Technologies.  

Infosys

Current Market Price: ₹1,190 

 

 

  Infosys stock has broken below its March low, and fallen more than the Nifty IT index in recent days. The stock is also seen trading below the lower-end of the Bollinger Bands. This development suggests that the next downside may have been triggered for the stock, says Anand James.  "The key pivot for Infosys stands at ₹1,220, the stock needs to hold above this in order to arrest the downside. On the flipside, the stock may dip to ₹1,130 levels amid the fresh downturn," explains the analyst from Geojit.  Echoing a smilar view, Om Mehra, technical research analyst at SAMCO Securities cautions that failure to stabilise near ₹1,150 could open further downside.  "The recent breakdown has been sharp, and the move below the rising support line indicates a clear loss of strength on the broader chart. The overall trend on the higher timeframe is now showing signs of deterioration, with a sequence of lower highs becoming more visible over the past few months," explains Mehra.     

TCS

Current Market Price: ₹2,461 

 

  TCS shares looks relatively stronger compared to Infosys as the stock has resisted a major fall, and trades comfortably above the March lows, says James.  The analyst believes that the stock may remain an outperformer as long as it holds above its key support at ₹2,406. On the upside, the stock may face resistance around ₹2,533.  Meanwhile, Mehra cautions that the recent pullback in the stock lacked follow-through and encountered fresh selling, suggesting that the recovery is not yet firm. The stock continues to trade below its key averages, which is trending downward and acting as a ceiling on any upside move.  "As long as the stock remains below ₹2,550–₹2,600, pressure may persist, with downside levels near ₹2,350–₹2,200," warns the analyst from SAMCO Securities.

HCL Technologies

Current Market Price: ₹1,222 

 

  James highlights that just like Infosys, HCL Technologies stock too has dropped below its March low, and the downside momentum seems strong at the counter given that the stock had opened with a downside gap recently.  The stock is also seen trading below the lower-end of the Bollinger Bands on the daily, with the trading range appears to be expanding, he adds.  Similarly, Mehra cautions that On the weekly timeframe, the structure is turning weaker, with the broader trend showing signs of distribution rather than accumulation.  "The current zone, around ₹1,200–₹1,220 is an important support area. Any inability to hold this range could extend the decline toward ₹1,150 and lower. On the upside, ₹1,350–₹1,400 now becomes a critical resistance band, and only a sustained move above this zone can lead to any meaningful stabilisation," expalins Mehra.   Meanwhile, James does not rule out a possibility of some pullback owing to a mean reversal following the recent sharp fall. James sees support for HCL Tech stock at ₹1,195 and ₹1,175 levels. In case of pullback, the stock may face resistance around ₹1,270.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.