After a 24% crash, IT stocks are rising again. With FII selling slowing, is this the bottom?

The IT sector has faced headwinds but is now showing signs of recovery, making it a focal point for FII flows and domestic investor interest. Valuations are key after the recent correction.

Maintain a bullish bias on Indian IT, focusing on large-cap and fundamentally strong mid-cap companies for potential long-term gains.

For Indian markets, this story mainly matters for TCS, INFY, WIPRO and the Information Technology pocket. The current signal is bullish, so traders should look for follow-through in price, volume, and sector breadth instead of reacting to the headline alone.

Watch whether the next market session confirms the setup described here: As a major IT player, it benefits from sector-wide positive sentiment and potential FII re-entry. Similar to TCS, Infosys is a large-cap IT stock that would gain from a sector rebound and valuation attractiveness. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •Nifty IT index climbed 8% in April.
• •Foreign investors significantly reduced their selling in the IT sector.
• •Many IT stocks are trading below historical averages and hold substantial cash.
• •Some strategists believe the sector has bottomed out.
• •Risk flag: Uncertainty regarding future growth prospects for the IT sector.