After a turbulent start to 2025, India’s IT sector is turning a new page, one filled with promise, renewed confidence, and technical indicators that signal a stronger tomorrow.
Following a sharp decline that saw the Nifty IT index tumble 33%, dropping from its December 2024 peak of 46,088 to a March 2025 low of 30,900, the sector is now showing signs of a strong bullish trend.
Source: Investing.com
Since April, the index has been climbing steadily, forming a higher top and higher bottom structure, and has recently broken above its 100-day moving average. Add to that a bullish inverted head and shoulders pattern, and the stage appears set for a robust IT comeback.
In the bullish breakout pattern, two midcap names are standing tall with impressive technical strength and market buzz- Birlasoft and Persistent Systems. These aren’t just recovery stories; they are potential front-runners in what could be the next leg of the tech rally.
Birlasoft
It’s been a textbook comeback for Birlasoft. After bottoming out at ₹330 in April 2025, the stock has surged to ₹450 by June, representing a 35% gain in just two months. However, it’s not just the numbers that are inspiring; it’s the chart patterns that support this move.
Source: Investing.com
- Ascending Triangle Breakout: A textbook bullish pattern, suggesting more upside ahead.
- Above the 100DMA: Reclaiming this technical level for the first time since December 2024 confirms strength.
- Volume Spike: Rising volumes on up-days signal strong participation from institutional and retail players alike.
- RSI Above 60: Momentum is clearly on the bulls’ side.
Birlasoft’s journey from ₹860 in early 2024 to ₹330 was steep, but it’s the comeback that’s capturing attention. With positive momentum, favourable chart patterns, and improving sentiment, Birlasoft is back in the spotlight and potentially heading northwards.
Persistent Systems
Persistent Systems is another midcap IT gem that’s showing remarkable character. After a dramatic drop from ₹6,790 in December 2024 to ₹4,150 in March 2025, the stock has surged over 50%, and it’s now coiling tightly, often a sign of a powerful breakout ahead.
Source: Investing.com
- Inverted Head & Shoulders Breakout: A classic signal of reversal and strength.
- Solid Support at 200DMA: Long-term support is intact and adding confidence.
- Low Volume Consolidation: Healthy sign as the stock takes a breather after its rally.
- RSI Momentum: Back above 60, pointing toward building momentum.
Persistent has always been a steady performer, and this recent phase is no exception. Having clocked 110% gains from June to December 2024, the stock corrected sharply but is now back in the game and potentiallygearing up for its next big move.
Midcaps Stepping Up in IT’s Recovery
The IT sector’s revival is a signal of strength in depth. While large-cap IT stocks often grab headlines, it’s the midcaps with their nimbleness and innovation that tend to lead during upturns.
Birlasoft and Persistent Systems offer not just technical breakouts, but also strong positioning within a rebounding sector. Their recent performances are anchored in solid patterns, improving indicators, and growing investor confidence.
Disclaimer:
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
As per SEBI guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
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