Tech Mahindra, Infy among top analyst picks as IT stocks continue to slide

Analysts at Geojit Investments and Choice Broking are bullish on Tech Mahindra stock, and view the current fall as a correction rather than trend reversal.

IT stocks have been one of the major laggards on the stock exchanges, with 8 out of 12 Nifty IT stocks down more than 10 per cent on the NSE since the start of the calendar year 2026. The Nifty IT index has shed 11.5 per cent. In comparison, the Nifty 50 is down mere 1.1 per cent.  Among individual stocks, Wipro down 16 per cent as of date is the major loser so far this year. Tata Consultancy Services (TCS), LTIMindtree, Infosys, Persistent Systems, Coforge, Mphasis and Oracle Financial Services Software (OFSS) are the other major losers.  Meanwhile, HCL Technologies and Tech Mahindra have managed to limit losses and outperform Nifty IT during this period. HCL Tech stock has dipped 8.8 per cent, while Tech Mahindra is down 1.6 per cent. On Thursday, IT stocks extended the slide. READ MORE  Given the current market trend, technical analysts flag caution as most of the IT stocks as they are seen forming lower-highs and lower-lows on the daily chart.  FOLLOW LATEST STOCK MARKET UPDATES TODAY LIVE  Among individual stocks, Drumil Vithlani, technical research analyst of Bonanza highlights that the technical structure for Coforge looks bearish, with the stock forming lower lows and lower highs, and also trading below the key Exponential Moving Averages (20, 50, 100, 200-EMAs). The analyst recommends exiting the stock in case of bounce to ₹1,525 levels. READ MORE 

IT Stocks to Buy: Analysts recommend these 3 IT stocks as potential Buys

  Meanwhile, as contra-bet within the IT sector, Sumeet Bagadia, Head of Technical Research at Choice Broking shares an optimistic view on Tech Mahindra stock.  Bagadia in a research note highlighted that Tech Mahindra stock has been forming higher-highs and higher-lows on the weekly chart, reflecting sustained buying interest amid a well-defined long-term uptrend. 

 

 

  The analyst views the recent dip in prices to a constructive phase, rather than trend reversal, and recommends buying the stock on dips.  "Tech Mahindra is trading comfortably above its key 20, 50, 100, and 200-week EMAs, highlighting strong underlying momentum and confirming the broader bullish setup. Now, the stock is undergoing a healthy retracement, which appears constructive rather than reversal-driven. Such pullbacks within an established uptrend often provide fresh entry opportunities," said Bagadia in a note.  As a trading strategy, the analyst recommends to buy the stock in ₹1,640 - ₹1,610 range, with a stop at ₹1,525. On the upside, the analyst expects the stock to rally back to ₹1,810 - ₹1,890 levels.  Echoing a similar positive outlook, Anand James, Chief Market Strategist, Geojit Investments also likes Tech Mahindra, and expects an interim pullback in the stock.  "Tech Mahindra is one of the few IT stocks which is yet to breach the 200-day Simple Moving Average (SMA). This encourages us to pick up the stock with stop loss below ₹1,550, aiming ₹1,600, says Anand James. 

 

  Among others, the analyst highlights that Infosys share is approaching a horizontal support, with most oscillators in the oversold territory. As such, James recommends buying the stock with a stop loss below 2025's low of ₹1,307, and a target of ₹1,488.  That apart, James sees signs of bottoming out given by key momentum oscillators such as - stochastics for a likely mean reversion in HCL Technologies. The stock, he believes, can jump back to ₹1,580, while a stop can be placed below ₹1,480.  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.