India’s information technology stocks are attracting renewed attention after the Nifty IT index broke above the 32,000–32,100 resistance zone, a level that had capped gains over the past few months. Despite some profit booking following the recent rally, the technical outlook remains positive, according to market analyst Aditya Agarwal, Head of Investment at Coheron Wealth.

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Agarwal expects the Nifty IT index to move towards 35,000–35,500 over the next few weeks. From the levels discussed in the October 23 report, the target suggests potential upside of around 10%, although actual returns will depend on market movements and the index’s ability to sustain its breakout.

Tata Consultancy Services (TCS), HCL Technologies and Tech Mahindra are among the stocks showing relative strength and emerging as key names to watch within the sector. Their performance will be important in determining whether the broader IT index can extend its recent gains.

The rally comes after a volatile period for Indian IT shares, with investors assessing quarterly earnings, demand from overseas clients and the impact of artificial intelligence on traditional technology services. Recent earnings from major companies have helped improve sentiment, but concerns over subdued client spending and AI-driven pricing pressure remain.

The index’s move above resistance is a positive technical signal, but it does not guarantee further gains. Investors will need to monitor whether the index holds above the breakout zone and whether buying interest continues after the recent rise.

For those tracking the sector, the next few weeks could be important in assessing the strength of the recovery. Company-specific earnings, global technology spending and broader market sentiment are likely to remain key influences on IT stocks.