Nifty IT gears up for Q3; Tata Elxsi, LTTS may gain up to 30%: Analysts

The Nifty IT index needs to breakout above 38,500 resistance, for a likely 13 per cent rally, says Kunal Shah, Senior Technical Analyst at Mirae Asset ShareKhan.

The Nifty IT index has managed to hold on to 0.6 per cent gain thus far in January despite a sharp volatility in the stock market. Since the start of the calendar year 2026, the IT index has broadly moved in the 1,000-point range - 37,700 - 38,700 levels.  The major IT companies are scheduled to announce Q3 earnings next week. Tata Consultancy Services (TCS) and HCL Technologies will kick-off the results season on January 12 (Monday) followed by Tata Elxsi on January 13 (Tuesday), Infosys on Wednesday January 14, L&T Technology Services (LTTS) on Thursday January 15 and Wipro on January 16 (Friday).  Will Q3 earnings of these prominent IT companies trigger a fresh rally or fall in the Nifty IT index? Here's what technical analyst Kunal Shah, Senior Technical Analyst at Mirae Asset ShareKhan has to say. 

Nifty IT

Current Level: 38,150 

 

 

  The Nifty IT index is facing strong resistance near 38,500, which aligns with the 50 per cent Fibonacci retracement of the entire decline from the December 2024 peak to the April 2025 low, making it a key decision point for the next major move, says Kunal Shah.  ALSO READ | Nifty50 outlook: Here's why 25,817 is key level to watch out for on charts  "The IT index is currently locked in a broad range between 36,000 and 38,500, and a decisive breakout on either side of this band is likely to trigger a strong trending move rather than the choppy action seen in recent months," explains Shah.  In case of a clear breakout above 38,500, the analyst says it would confirm a bullish control and could open up upside potential towards the 43,000 for the Nifty IT index. This implies a likely 12.7 per cent upside potential for the Nifty IT from current levels.  Among individual stocks, Kunal Shah recommends Tata Elxsi and LTTS; here's why 

Tata Elxsi

Current Market Price: ₹5,785 

 

  As per Elliott Wave interpretation, Tata Elxsi stock has completed Wave 4 on the monthly chart and has now entered Wave 5, which is typically the final leg of a larger uptrend and can often be a strong, momentum-driven move, explains Shah.  The stock remains a buy-on-dips candidate, with strong positional support visible in the ₹5,500–₹5,300 zone, where multiple technical studies and option data highlight demand and value-buying interest.  On the upside, the immediate hurdle is placed near ₹6,000; a convincing breakout above this level is likely to accelerate upside momentum and can potentially drive the stock towards the ₹7,500 zone over time, in line with the typical Wave 5 extension potential, the analyst said.  This implies a potential upside of 29.7 per cent from the current market price.   

L&T Technology Services (LTTS)

Current Market Price: ₹4,410 

 

   LTTS stock is trading near a make-or-break demand zone around ₹4,200, where multiple support references and past buying activity suggest strong dip-buying interest.  The immediate hurdle is placed near ₹4,725; a decisive breakout above this level can trigger short-covering and fresh long additions, opening upside potential towards the ₹5,150–₹5,200 resistance zone in the near term. A likely up move of around 17.9 per cent from present levels.  The stock remains a buy-on-dips candidate around the mentioned support area, with a strict stop-loss near ₹4,000 on a closing basis, to manage risk in case the demand zone fails and the broader structure weakens.  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.