Indian IT stocks experienced a significant recovery on July 10, 2026, with the Sensex rising 827 points and Nifty gaining 244 points. According to India Infoline, the strong market performance was driven by strong TCS Q1 FY27 results, a rally in IT stocks, lower crude oil prices, easing volatility, and positive global cues. This broad-based market rally provided crucial support for IT stocks that had been showing technical recovery signs in recent weeks. The positive sentiment across realty, PSU banks, and financial stocks also contributed to the overall market strength.
According to reports from The Financial Express, Persistent Systems and Mphasis are showing powerful bullish signals near long-term support after experiencing sharp corrections. Quality stocks typically rebound to levels where long-term investors have traditionally had confidence after steep corrections, with these zones representing firm support where buying demand has consistently overwhelmed selling pressure. When stocks bounce off such support and momentum indicators turn positive, it creates a potential high probability technical setup for recovery. The recent market rally has provided additional momentum to these technical setups, strengthening the case for continued recovery.
As reported by The Financial Express, Persistent Systems has tested the ₹4,000-₹4,400 zone three times in the past year, with buyers consistently holding deeper corrections at bay. The stock has already rallied almost 8% on the weekly chart from the recent bounce, demonstrating strength in demand at these levels. The 200WEMA is providing additional long-term support, while the weekly RSI has crossed above its moving average and trades around 48, approaching bullish territory above 50. The MACD histogram is tightening up after a period of weakness, indicating potential trend change behavior. The recent market rally has further validated this technical setup and provided additional momentum for the stock's recovery.
According to The Financial Express, Mphasis has consistently found buying support around the ₹2,000 mark for almost three years, preventing falls during 2023, early 2025 correction, and 2026. The multiple tests of the same price zone make it a technically significant support level. The weekly RSI has crossed above its moving average and trades around 48, with momentum indicators suggesting accelerating buying momentum. The MACD histogram is tightening up after extended weakness, typical behavior in early trend change stages. The recent market rally has reinforced this support level and provided additional confirmation of the stock's technical strength.
As reported by The Financial Express, the Indian IT sector has experienced a massive correction in recent months, but corrections often present buying opportunities in fundamentally strong businesses. Both Persistent Systems and Mphasis are showing strong long-term support, improving RSI, and positive MACD signals. The recent market rally, driven by strong TCS results and positive global cues, has provided additional validation for these technical recoveries. If these stocks sustain above their respective support zones and momentum continues building, they could potentially enter a bullish phase. The combination of technical strength, long-term support levels, and recent market momentum makes both stocks worthy of consideration for investors seeking exposure to quality IT names.
