TCS, Infosys: Time to sell IT stocks on Trump's H-1B visa salvo? Tech view

IT stocks such as Infosys, TCS and 3 others could see limited downside from current levels, as they are trading above key support levels, backed by positive cues from momentum oscillators, show charts

IT stocks led by Infosys and TCS are likely to react to an unprecedented hike in H-1B visa fee, for work permit, in the United States (US).  The US President Donald Trump on Sunday signed a proclamation imposing a $100,000 fee per year on H-1B work visas, a move likely to hit Indian information technology (IT) companies operating in the US, with Indian workforce.  Analysts expect IT stocks, which have already underperformed so far in 2025, to witness a price correction amid the H-1B fee hike, but believe the fall may be limited amid Trump's clarification that the new fee structure will be applicable only to new work permits, and not existing H-1B visa holders. READ MORE

IT stocks outlook

On Monday morning, IT stocks slipped up to 4 per cent in early trade. Infosys  dropped nearly 4 per cent, and TCS shed 3 per cent. HCL Technologies, LTIMindtree and Wipro also declined around 4 per cent each, while the Nifty IT index also cracked up to 4 per cent.  Given this background, should you hold or sell IT stocks at current levels? Here's a technical outlook on the leading IT stocks - Infosys, TCS, Wipro, HCL Technologies and LTIMindtree - listed on the BSE and NSE.

Infosys

Last close: ₹1,540  Likely Target: ₹1,638  Upside Potential: 6.4%  Support: ₹1,502; ₹1,450  Resistance: ₹1,582; ₹1,607  Infosys, which has shed 18 per cent thus far in 2025, is in pullback mode with the stock closing above the 100-DMA in the last two trading sessions. The near-term bias is likely to be cautiously positive as long as the stock holds above ₹1,450 levels, with interim support seen around the 20-DMA at ₹1,502.   

 

 

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  On the upside, the stock may extend the pullback towards the 200-DMA, which stands around ₹1,638 levels. Intermediate resistance for the stock can be anticipated around ₹1,582 and ₹1,607 levels. 

Nifty IT Index

Last close: 36,578  Likely Target: 38,500  Upside Potential: 5.2%  Support: 35,750; 34,950  Resistance: 36,825; 37,700  The Nifty IT index recently tested resistance around its 100-Day Moving Average (100-DMA), which stood at 36,825 and then retraced. The index has been languishing below this key moving average since July 21, 2025.   

 

  The daily chart further shows that the IT index is seen holding above the 20-DMA consistently for the last two weeks. Further, key momentum oscillators on the daily and weekly chart have witnessed a positive crossover, hence the IT index may see limited downside in the near-term.  The 20-DMA at 35,750 levels is likely to act as a first line of defence, followed by the trend line support at 34,950 levels. On the upside, the index needs to break and sustain above the 100-DMA hurdle, for a likely rally towards the 200-DMA, which stands around 38,500 levels, with interim resistance likely around 37,700 levels.   

TCS

Last close: ₹3,169  Likely Target: ₹3,350  Upside Potential: 5.7%  Support: ₹3,110; ₹3,045  Resistance: ₹3,250  TCS stock is likely to trade on a cautiously optimistic note as long as the stock quotes above ₹3,045 levels, with interim support anticipated around the 20-DMA, which stands at ₹3,110. On the upside, stock can pullback to ₹3,350 levels, with interim resistance likely around the 20-Week Moving Average (20-WMA), which stands around ₹3,250 levels.   

 

 

HCL Technologies

Last close: ₹1,467  Likely Target: ₹1,388  Downside Risk: 5.4%  Support: ₹1,432; ₹1,415; ₹1,403  Resistance: ₹1,506  HCL Technologies is likely to trade with a negative bias as long as the stock trades below ₹1,506. On the downside, the stock has near support at ₹1,432 levels; below which the stock may seek support around ₹1,415 and ₹1,403 levels. The long-term chart suggests that a monthly close below ₹1,388 shall invite fresh trouble for the stock.   

 

 

LTIMindtree

Last close: ₹5,510  Likely Target: ₹6,120  Upside Potential: 11%  Support: ₹5,375; ₹5,300; ₹5,170  Resistance: ₹5,630; ₹5,950  Last week, LTIMindtree stock closed above its 50-WMA for the first time since early February 2025. The near-term bias at the counter is likely to be positive as long as the stock holds above ₹5,170 levels, with near support visible around ₹5,375 and ₹5,300 levels. On the upside, the stock seems on course to test the monthly trend line hurdle, which stands at ₹6,120. The stock may face intermediate resistance around ₹5,630 and ₹5,950 levels.   

 

 

Wipro

Last close: ₹256  Likely Target: ₹275 / ₹243  Upside Potential: 7.4%  Downside Risk: 5%  Support: ₹251; ₹248  Resistance: ₹261; ₹262  Wipro stock is seen facing resistance around its 50-WMA, a key moving average the stock has failed to conquer since mid-March 2025. The 50-WMA stands around ₹261, and coincides with the long-term 200-DMA, which stands at ₹262 levels. Above which, a spurt towards ₹275 seems likely.   

 

  The stock may witness a sideways trend in the near-term, with downside capped around ₹243 levels. Interim support for the stock can be anticipated around ₹251 and ₹248 levels.