Indian equities have recently shown a strong rebound, largely propelled by the technology sector. Market expert Vishnukant Upadhyay points to better-than-expected earnings from companies like HCLTech as a significant driver for this surge, although he cautions that the overall market sentiment remains uncertain.
IT Sector Leads the Charge
Upadhyay notes that the current market gains are predominantly fueled by IT stocks, with prominent names like HCLTech and TCS leading the way. While it might be premature to declare a sustained, sector-wide rally, he foresees additional near-term upside, estimating a further 3-4% move for the broader IT basket.
Large-cap technology firms such as TCS, HCLTech, and Infosys are expected to remain central to this momentum. Beyond the established giants, Upadhyay is also bullish on select midcap IT names, specifically highlighting Persistent Systems, Coforge, and Mphasis. This suggests that the positive sentiment extends beyond just a few earnings-driven trades, offering broader opportunities in the tech space despite global concerns around an AI-linked tech selloff.
Broader Market Remains Guarded
Despite the strong performance in IT, Upadhyay describes the broader market as “a little dicey.” He advises traders against overinterpreting short-term rebounds, emphasizing that the current rally has improved market tone but not yet solidified conviction.
For traders focused on expiry, he indicates that a clearly constructive setup is still absent. Upadhyay sets the near-term market range between 22,300 on the downside and 22,650 on the upside for the Nifty index. This implies that stock-specific actions will likely continue to dominate until a more definitive directional trigger emerges.
Technical Triggers for a Bullish Reversal
The cautious optimism stems partly from weekly chart patterns. Upadhyay observed a doji candlestick formation last week, which can signal a pause in a decline or the potential for a reversal. However, a full bullish reversal, he clarifies, would require the index to trade sustainably above the 22,850-22,900 zone. Until then, his strategy remains tactical, advocating a “sell-the-rally, buy-the-dip-from-lower-levels” approach.
Ultimately, while the IT sector is currently carrying the market, the next phase of growth hinges on whether the index can convert this rebound into a confirmed breakout.