F&O Talk: Nifty’s break above 23,450 could push index to 23,650; Sudeep Shah picks Tech Mahindra, TCS strategy
Tech Mahindra secured new business in a quarterly results development.
· Economic Times Markets
SBI Securities’ Sudeep Shah sees scope for Nifty’s recovery if it holds 22,750, with IT, private banks and media leading. He flags key resistance levels, banking earnings, improving FII flows and continued large-cap outperformance, while warning that a durable reversal remains unconfirmed.
The analysis
Against that, the stock is +8.5% on the day at ₹1,790.00, and has returned +18.5% over three months. It is trading close to its 52-week high, so expectations were already elevated going in. The it sector has moved +4.0% over the same period, so Tech Mahindra is running 14.5 points ahead of its peers.
This is an Index / institutional flows event. Passive and institutional flows move price independently of fundamentals, and around rebalancing dates they dominate it. On the day the stock is +8.5%, so the tape moved decisively on this.
With Tech Mahindra, Tata Consultancy and State Bank of India all implicated, this reads as a IT-level move rather than a company-specific one, which is the more durable kind of signal.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
- Sustained FII or DII direction moves the whole market, not just the names being bought — it sets the tape's tone.
Market context
- It touches several names at once (TECHM, TCS, SBIN), which points to a sector-level rather than company-specific driver.
- Sector exposure: IT, Banks.
- The immediate tone of coverage reads positive.
In this story
Related coverage
Q2 impact: TechM shares gain 5% as analysts raise earnings estimate, target
Market wrap: Tech Mahindra, TCS, InterGlobe, BSE top gainers and losers on Nifty and Sensex on Friday
Nifty IT soars 14% in 6 days on Q2 earnings boost; TechM, Wipro, TCS shine
IT's time to celebrate when chips are down; Nifty IT soars 11.7% to log biggest weekly rally since 2008
Jio IPO’s grey market hints at 20% listing pop. What are Emkay, SBI Securities saying?