Infy, TCS, HCL Tech: Are IT stocks due for a rebound? Charts say this

IT stocks such as Infosys, TCS, HCL Technologies, LTIMindtree and others have declined up to 37 per cent from the December highs and look oversold on the daily chart; here are the key levels to track.

IT stocks have witnessed a steep fall in the last four months as profit-taking set-in after the Nifty IT index scaled new life-time highs.  The Nifty IT index has plunged over 22.3 per cent from its record high of 46,089 hit in December 2024 to a low of 35,805 this month. In comparison, the Nifty declined 11.6 per cent from its December high of 24,858 to a low of 21,965 earlier this month.  Among the Nifty IT pack - LTIMindtree was the top loser during this period, down over 37 per cent. It was followed by Mphasis, which shed 32 per cent. Index heavyweights Infosys, TCS and HCL Technologies have slumped 23 per cent each.  Others such as - CoForge, Persistent Systems, Tech Mahindra, L&T Technology Services and Wipro - from the Nifty IT shed 17 - 22 per cent.  Reportedly, IT stocks have taken a severe beating this month on the back of persistent selling by foreign portfolio investors (FPIs). In the first fortnight of March, FPIs net sold IT stocks to the tune of Rs 6,934 crore; whereas total net sales stood at Rs 30,013 crore.  In the last three trading sessions, the market has staged a smart recovery, whereas IT stocks are still to catch-up. The Nifty 50 index has jumped almost 5 per cent from its March low, while the Nifty IT index has gained 3.3 per cent.    Against this background, are IT stocks due for a relief rally in-line with the broader market? Here's what the chart suggests.  Nifty IT  Current Price: 37,000  Upside Potential: 6.2%  Support: 36,680; 36,450; 36,150  Resistance: 38,200; 38,350; 38,640; 39,300  The Nifty IT index is seeing positive crossover on key momentum oscillators on the daily scale; hence the near-term bias is likely to turn favourable. The IT index seems on course to test 38,200 levels in the short-term; above which a spurt to 39,700 cannot be ruled out. Interim hurdles can be experienced around 38,350, 38,640 and 39,300 levels. CLICK HERE FOR THE CHART  On the medium-term scale, the Nifty IT index seems to be seeking support around its 100-WMA (Weekly Moving Average) at 36,150 levels. As long as this support is protected, the index can attempt a counter rally. Near support for the index now exists at 36,680 and 36,450 levels.  Infosys  Current Price: Rs 1,622  Upside Potential: 4.8%  Support: Rs 1,565; Rs 1,520  Resistance: Rs 1,637; Rs 1,662; Rs 1,680  Infosys was seen testing support at its 100-WMA (Weekly Moving Average), which stands at 1,565 in recent days; below which the next major support is the 200-WMA at Rs 1,520. For now, the stock is also trading in a fairly oversold zone on the daily time-frame. Chart shows that the stock needs to trade consistently above Rs 1,611 levels to stage a relief rally. CLICK HERE FOR THE CHART  On the upside, the stock can potentially pullback to Rs 1,700 levels; with interim resistance likely around Rs 1,637, Rs 1,662 and Rs 1,680 levels.    TCS  Current Price: Rs 3,566  Upside Potential: 8.1%  Support: Rs 3,462; Rs 3,380  Resistance: Rs 3,607; Rs 3,687; Rs 3,746; Rs 3,786  Select momentum oscillators like the MACD (Moving Average Convergence-Divergence) and Stochastic Slow are showing mild positive signs on the daily scale. That apart, the stock is seen seeking support at its 200-WMA for the last four weeks, which now stands at Rs 3,480.  The daily chart suggests that the near-term bias for TCS can be cautiously optimistic as long as the stock holds above Rs 3,462; below which the major support stands at Rs 3,380. CLICK HERE FOR THE CHART  On the upside, the stock needs to break and trade above its 20-DMA (Daily Moving Average) at Rs 3,607 to trigger a likely pullback rally. On the upside, the stock can potentially jump back to Rs 3,855 levels; with interim resistance likely around Rs 3,687, Rs 3,746 and Rs 3,786 levels.  HCL Technologies  Current Price: Rs 1,570  Upside Potential: 8.5%  Support: Rs 1,550; Rs 1,519  Resistance: Rs 1,645; Rs 1,660  HCL Technologies is seen nearing the 20-DMA at Rs 1,591; break and sustained trade above the same shall augur well for the stock. On the upside, the stock can potentially rally to Rs 1,703 levels; with interim resistance likely at Rs 1,645 and Rs 1,660. The near-term bias is expected to remain favourable as long as the stock holds above Rs 1,550; below which the next support stands at Rs 1,519 levels. CLICK HERE FOR THE CHART  LTIMindtree  Current Price: Rs 4,470  Upside Potential: 13.6%  Support: Rs 4,450; Rs 4,355  Resistance: Rs 4,678; Rs 4,824; Rs 4,850  LTIMintree is trading in an extremely oversold zone on the daily scale. The stock needs to trade consistently above Rs 4,450 for the sentiment to turn favourable at the counter. The key support for the stock now exists at Rs 4,355. On the upside, it can potentially jump back to Rs 5,076 levels - wherein stands the 200-WMA. Interim resistance for the stock is expected around Rs 4,678, Rs 4,824 and Rs 4,850 levels. CLICK HERE FOR THE CHART 
 

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