Nifty IT: What technical charts suggest amid the AI-led tech rout – Top IT stocks to buy or sell

Indian IT stocks bled on Wednesday, February 4, tracking a selloff in US tech shares and concerns over new AI tools launched by Anthropic. The tools can automate tasks in legal, compliance, marketing, and data analysis—segments where IT services firms generate steady revenues. A stronger Indian Rupee added pressure, as it typically weighs on margins for export-focused companies.

Abhinav Tiwari, Research Analyst at Bonanza, said, “We expect the reaction on Wednesday was extreme and it will settle in a day or two because this will not impact the fundamentals on an immediate basis.”