2 November 2026 Punjab Khabarnama Bureau : Indian information technology (IT) stocks could extend their recent rally, with technical indicators suggesting that the sector may be entering a stronger recovery phase after a prolonged period of underperformance. Rahul Ghose, Founder and CEO of Octanom Tech and Hedged, believes the charts point towards a potential continuation of the upward trend and has identified Coforge and Tech Mahindra as two stocks worth tracking.
In an interview with Moneycontrol published on November 2, 2026, Ghose said the Nifty IT index was showing signs of a meaningful technical reversal rather than a temporary recovery. He believes both stocks could offer 20–25 per cent upside over the medium term, although he advised investors to consider buying on market corrections instead of chasing the recent rally.
Nifty IT Charts Signal Possible Trend Reversal
According to Ghose, the Nifty IT index has formed two consecutive bullish engulfing candles on the monthly chart. This technical formation is often interpreted by chartists as a potential reversal signal, particularly after an extended period of weakness.
He also pointed to an inverse head-and-shoulders pattern developing on the weekly chart. A decisive weekly close above the pattern’s neckline could provide further confirmation of a bullish trend.
The index had reclaimed the 32,500 level on Friday, October 30, after gaining approximately 17.7 per cent over the preceding month.
Ghose said the combination of these technical indicators suggested that the IT sector’s recovery could have further room to run. However, after such a sharp move, some consolidation would be healthy.
His preferred strategy is to accumulate selected IT stocks during market dips rather than enter aggressively after a strong rally.
Coforge: Stock to Watch on Market Corrections
Coforge is among Ghose’s preferred stocks as the IT sector shows improving technical strength.
He believes the stock’s chart structure supports further upside and recommends accumulating it during pullbacks. Rather than chasing prices after a sharp rise, investors could watch for corrections that offer more favourable entry levels.
Coforge operates in the IT services and digital transformation space, serving clients across industries. Its business includes technology consulting, software development, cloud services and digital engineering.
The stock’s technical setup is being viewed in the context of the broader recovery in Indian IT shares. However, its future performance will also depend on business growth, client spending, margins and global demand for technology services.
Tech Mahindra Could Offer 20–25% Upside
Tech Mahindra is the second IT stock highlighted by Ghose. He said its chart structure is similar to Coforge and that both companies are approaching all-time-high territory.
According to the CEO, the absence of significant historical resistance above these levels could support further price movement if the bullish trend continues.
Ghose sees a potential upside of 20–25 per cent in both stocks over the medium term. However, he did not provide precise price targets because the stocks are moving towards uncharted price territory.
The projected upside is a technical assessment by the market expert and should not be interpreted as a guaranteed return.
Nifty 50: 23,500–23,600 Short-Term Target
Apart from IT stocks, Ghose also shared his outlook for the broader market.
He said the Nifty 50 had formed a Morning Star pattern around the 22,180 support level on the weekly chart. This was followed by a strong bullish candle, indicating a possible reversal from the support zone.
The index closed at 23,053 on Friday, October 30, marking its first close above 23,000 in eight trading sessions.
Ghose identified 23,500–23,600 as the short-term target range for the Nifty 50, while 22,180 remains an important support level in his technical assessment.
L&T and Apollo Hospitals Also on the Radar
Ghose also discussed opportunities outside the IT sector.
He said Larsen & Toubro was finding support along a rising trendline following a strong set of financial results. Based on the chart structure, he sees the possibility of the stock moving towards ₹4,100–₹4,200.
Apollo Hospitals was another stock he discussed. The company had formed a hammer pattern on the monthly chart, with support from a rising trendline and the monthly 20-day exponential moving average.
The stock gained 9.3 per cent during the week to close at ₹8,448. Ghose also highlighted delivery volumes on October 28, which were approximately 79 per cent above the five-day average.
However, he cautioned against chasing the stock after its sharp weekly rise and suggested watching for a pullback towards the breakout zone.
Why IT Stocks Are Back in Focus
The recent recovery in Indian IT shares has attracted attention after a period of pressure from concerns about global technology spending, artificial intelligence and uncertain economic conditions.
The Nifty IT index’s October performance has been supported by improved market sentiment and a recovery in selected technology stocks.
However, the sustainability of the rally will depend on factors such as demand from US and European clients, artificial intelligence-related spending, deal wins, revenue growth and operating margins.
Investors will also monitor upcoming quarterly results and management commentary for signs that the improvement in share prices is being supported by business fundamentals.
What Investors Should Watch
Ghose’s outlook suggests that Coforge and Tech Mahindra could remain on investors’ watchlists if the Nifty IT index sustains its upward momentum. The projected 20–25 per cent upside is based on technical analysis and relates to the medium term.
Investors should also consider valuation levels, earnings performance, business risks and their own investment objectives before making decisions.
The key levels identified by the expert include 32,500 for the Nifty IT index, 23,500–23,600 as the short-term Nifty 50 target range and 22,180 as an important support level.