How To Trade IT Stocks Now? SEBI Analysts Weigh In Amid H1-B Fee Hike

Indian IT majors are facing renewed pressure after the US announced a steep hike in H-1B visa fees to $100,000. 

The move threatens to sharply raise costs for companies dependent on sending engineers onsite, even as margins remain tight and demand visibility uncertain, said SEBI-registered analyst Rajneesh Sharma.

While firms are exploring alternatives like O-1 and L-1 visas, challenges persist regarding costs and approval rates. For investors, the development adds a structural overhang to the outsourcing model that underpins sector revenues, he said.

How to trade IT stocks now?

Infosys, TCS, HCLTech, and Wipro are all testing crucial support zones. Infosys is trading at around ₹1,496, down 2.9% for the week, and sitting inside a descending triangle, Sharma noted. A break below ₹1,385 could trigger a sharp fall toward ₹1,250 - ₹1,100, with bullish momentum only above ₹1,645.

TCS closed at ₹3,072.80, slipping 3%, and is nearing the apex of a falling wedge. The ₹3,000 - ₹3,050 range is critical, Sharma said, and a breakdown could lead to a fall to ₹2,850, while only a move above ₹3,195 with volume would turn momentum positive.

HCLTech, at ₹1,440.10, remains trapped inside a descending channel. Its key support lies at ₹1,315 - ₹1,360, but failure to hold could drag it toward ₹1,209, the analyst added.

Wipro, in contrast, showed relative strength, gaining 2.1% to ₹250.40. The stock is consolidating within a ₹243 - ₹271 range, and only a breakout above ₹271 can signal upside toward ₹285.

What should traders do?

On the technical charts, the Nifty IT index is still loosely holding its long-term rising trendline support but remains below both the 50-day and 200-day exponential moving averages (EMA), said Finkhoz RoboAdvisory.

The EMAs are sloping downward, a sign of medium-term weakness. The large red candle and the relative strength index (RSI) below 50 points to waning momentum, the analyst said.

If the current support gives way, the next key zone is around 34,000, which could either trigger a technical bounce or lead to a deeper downside.

While the sector may see choppiness as firms adjust, long-term resilience remains intact. 

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