Bullish Signal: NIFTY IT Jumps 2% as COFORGE, TECHM Lead Rally

Indian IT stocks, including major players like Coforge and Tech Mahindra, experienced a significant rally for the second consecutive session, leading to a more than 2% jump in the NIFTY IT index. This surge occurred despite a broader market decline, indicating a sector-specific positive sentiment.

This rally is significant for traders as it suggests a potential short-term reversal or consolidation in the IT sector, which has seen a 25.3% decline in 2026. The attributed reasons, currency weakness and export earnings, highlight the sector's sensitivity to macroeconomic factors and global demand, offering a counter-trend opportunity amidst a weak overall market.

The positive momentum directly impacts IT majors like COFORGE, TECHM, INFY, TCS, WIPRO, and HCLTECH, which are likely to see continued buying interest in the near term. The NIFTY IT index's strong performance could attract capital flows into the sector, potentially leading to outperformance compared to the broader Nifty and Sensex indices, which are currently under pressure.

Traders should monitor the INR-USD exchange rate for continued weakness, as it directly supports export-oriented IT companies. Watch for further analyst commentary on IT sector outlook and any updates on global tech spending. Key resistance levels for the NIFTY IT index should be observed for signs of sustained upward momentum or profit-booking.

• •Coforge, Tech Mahindra, and other tech stocks rallied on May 18.
• •NIFTY IT index rose 2.4%.
• •Analysts attribute the rally to currency weakness and export earnings.
• •The rally occurred despite concerns over AI disruption and mixed earnings guidance.
• •The IT sector had declined 25.3% in 2026 prior to this rally.