The IT sector has rebounded sharply after a steep decline, with the NIFTY IT index surging more than 5.5% this week to date and posting a 5.2% gain on Tuesday, marking one of its best performances in over a year. The rally was driven by strong gains in the index heavyweights: Tata Consultancy Services rose 6%, HCL Technologies 8%, Infosys 4% and Tech Mahindra 4%. Investors have taken cues from the Q2FY27 earnings reports, turning optimistic on IT stocks amid a lacklustre broader market.

Tata Consultancy Services shares have bounced back more than 15% over the last ten trading sessions, supporting the strong rally in the NIFTY IT index. On the daily chart, the stock trades above its 20‑ and 50‑period exponential moving averages (EMAs) and shows a positive crossover. However, the long‑term trend remains sideways until the share price crosses the 200‑period EMA at ₹2,459, which is the current resistance level. The 200‑EMA mark of ₹2,459 remains a crucial support before a potential bullish reversal.

Infosys share price has jumped over 10% in the last ten trading sessions, forming a double‑bottom candlestick pattern near ₹979. The recent pullback rally saw the shares cross their 20‑ and 50‑period EMAs, indicating a potential positive crossover. The relative strength index (RSI) stands at 58, signalling strong bullish strength after a bounce back from lower levels. The 200‑period EMA at ₹1,208 remains the key resistance level for the stock. This level is critical as it has acted as a barrier during previous pullbacks, and a breach could signal a sustained upward trend.

HCL Technologies shares have outperformed peers such as TCS, Wipro, Infosys and Tech Mahindra, sustaining gains from the July lows. The stock also crossed its long‑term 200‑period EMA on Wednesday, signalling a reversal from bearish to bullish momentum on the long‑term chart. The 200‑EMA level sits at ₹1,526, and the share price has moved above the 20‑ and 50‑period EMAs, reinforcing the bullish bias. The recent rally has lifted the stock above the 28,800 support level, and analysts note that a sustained move above the 200‑EMA could lead to a new bullish phase.

Tech Mahindra shares have surged over 9% in the last three trading sessions, leading the sector rally. The bounce lifted the stock above the short‑term and long‑term EMAs of 20, 50 and 200 periods at ₹1,531, ₹1,546 and ₹1,526 respectively. The chart also shows a positive crossover of the 20‑EMA over the 50‑EMA from below, indicating sustained bullish momentum. The 200‑EMA level of ₹1,526 remains a key resistance point. Analysts observe that breaking the 200‑EMA could trigger a new upward trend, while a failure to hold above it may signal a reversal.

The NIFTY IT index appears to be bottoming out after the recent rally, with long‑term momentum potentially strengthening if it crosses above the 200‑period EMA at 31,024. The index has traded below the long‑term moving averages since February 2026 and failed to cross it in the previous two attempts in August and September. The upward‑sloping trendline support remains at 28,800 and 31,000, and a breakout or breakdown from this range will determine the index’s direction. If the index sustains a move above the 200‑EMA, it could signal a bullish reversal; otherwise, a decline below the 28,800 support may trigger a further correction.