The Nifty IT index fell more than 2% on Tuesday, 30 June, as investors turned risk-averse amid a combination of global technology weakness, uncertainty over AI-led disruption, and concerns about demand from key overseas markets.
Heavyweights LTIMindtree led the losses, falling 2.54%, followed by Infosys (-2.33%), TCS (-2.19%), Wipro (-2.07%) and HCLTech (-1.49%). Other constituents, including Persistent Systems and Coforge, also traded in the red, reflecting weak sentiment across the sector.
Anshul Jain, Head of Research at Lakshmishree, believes the Nifty IT Index is approaching a crucial long-term support zone near 26,189, which marks its lowest level in nearly four years and could serve as an important technical demand area.
According to Jain, while a short-term relief rally from these levels cannot be ruled out, the broader technical structure remains weak. He noted that the index continues to form lower highs and exhibit persistent relative underperformance, while negative long-term momentum indicators point to continued institutional caution towards the sector.
Jain said any near-term rebound is likely to be corrective in nature unless the index manages to reclaim key resistance levels with strong market participation. On the downside, a decisive breach below the 26,189 support level could signal a structural breakdown and potentially pave the way for a prolonged decline over the coming months.
From a long-term investment perspective, Jain remains cautious on the sector, suggesting investors wait for a durable base to form and clearer signs of a trend reversal before turning constructive on IT stocks.
