In near term, the Nifty IT Index is expected to trade within a broader range of 42,800 to 41,600. A close above or below this range would likely trigger a decisive move in the respective direction.
Among individual information technology stocks, LTIMindtree led the charts, soaring 7.76 per cent intraday at Rs 6,198 per share on the NSE
LTIMindtree stock was buzzing in trade on the bourses. The stock rallied as much as 3.61 per cent to hit an intraday high of Rs 5,957 per share.
Nifty IT up 1.77 per cent intraday after US Fed signals rate cut in September. HSBC believes mid-tier IT is not so strong.
The broader markets also showed strength with the BSE MidCap index rising 0.66 per cent at 48,627 levels, while the BSE SmallCap index scaled a new record high at 56,066, jumping 385 points
Legends Global Opportunities (Singapore) bought a 1.52 per cent stake in the company, while New Leaina Investments sold 0.78 per cent shares.
The rise in the Cyient share price came after the company announced that it has incorporated Cyient Semiconductors Private Limited as a wholly owned subsidiary of the company.
On the bourses, Mphasis has rallied 26.7 per cent in the last three months, driven by expectations of interest rate cuts in the US and early signs of recovery in the US-BFS sector.
The anticipated downside targets or support levels for the Nifty Auto Index are 24,300, 23,900, and 23,500
The Nasdaq rose more than 2% on Thursday after July the US retail sales data signalled resilient consumer spending, allaying fears of an imminent recession in the world's largest economy.
The rally in IT stocks came on the heels of a major drop in US jobless claims, which fell to 233,000 for the week ending August 3-the largest decline in nearly a year.
At 6:50 AM, GIFT Nifty futures were down 179 points, trading at 24,187.5, indicating a negative start for Indian stocks.
On the bourses, Infosys's stock witnessed a decline, falling 1.32% to an intraday low of Rs 1,828.10 per share on the NSE. In comparison, the Nifty IT index dropped 1.64% to a low of 40,038.25 levels.
The Nifty Pvt Banks Index is currently trading within a defined range of 25,900 to 25,400. A close above or below this range would act as a trigger for a directional move.
For context, the record highs for Sensex and Nifty50 are 81,587.76 and 24,854.80 levels, respectively.
Q1 earnings impact: In the last two weeks, the NASDAQ has plunged 7 per cent, while the IT index has rallied 7 per cent. Trading strategies for Infy, TCS, HCL Tech and LTIMindtree here.
Domestically, foreign institutional investors were net buyers on July 16, acquiring shares worth Rs 1,271.45 crore, whereas domestic institutional investors sold shares worth Rs 529.48 crore.
The uptick in stock price came after the company announced the strategic expansion of its semiconductor business with the establishment of a fully owned subsidiary
IT stocks outlook: TCS can potentially rally another 6 per cent from present levels; while Infosys, Wipro and LTIMindtree can rally up to 15%, suggest charts.
IT stocks today: TCS, Mphasis, Accelya Solutions India, Sonata Software, and Kellton Tech Solutions rose in the range of 3 per cent to 6 per cent