Infosys, HCL Technologies, TCS, Tech Mahindra and other technology stocks witnessed sustained buying in today's session. Indian markets faced selling pressure towards the end of the trading session. US markets were trading positive today with Nasdaq touching fresh all-time highs. Overall sentiment in the global markets is positive but investors are also cautious about geopolitical risks. TopNews Team has reviewed technical levels for buzzing stocks for short term traders.

HCL Technologies: Driving Innovation Through Strategic Research Partnerships

HCL Technologies has solidified a crucial partnership with MIT Media Lab, a move signaling its dedication to pioneering advancements in artificial intelligence and quantum computing. This alliance provides HCL with privileged engagement in cutting-edge research, positioning it to co-develop AI solutions with a significant real-world impact. Vijay Guntur, HCLTech’s CTO and ecosystem head, emphasizes the collaboration’s role in accelerating breakthroughs and enhancing the company’s ability to secure major AI transformation contracts globally.
From an investment standpoint, this partnership enhances HCL's innovation credentials, thereby expanding its pipeline for client acquisition and long-term growth prospects. The impact was evident in the stock’s immediate market reaction, rising 1.68% to close at ₹1,416.90 on the NSE post-announcement, with weekly gains of around 2% amid a challenging three-month period marked by a roughly 10% decline across major IT stocks, including those in the Nifty IT index.

Brokerages like HDFC Securities have responded positively, upgrading HCL Technologies to a “Buy” rating, driven by attractive valuations and the company’s strategic focus on high-margin areas such as cloud services, cybersecurity, and automation. These sectors are pivotal in IT’s evolving landscape, where AI is rapidly becoming a core growth driver. Market analysts recommend selective investment in HCL given its robust fundamentals and innovation momentum even as the broader sector faces headwinds. The upcoming Q2 earnings report, slated for October 13, 2025, will be critical for investors to gauge demand trends and assess the strength of HCL’s deal pipeline, likely influencing near-term stock performance.

Key price influencers include:

Expanding strategic alliances in AI and quantum computing.

Positive brokerage upgrades linked to AI prospects.

Solid fundamentals amidst sector-wide challenges.

Investor focus on Q2 earnings and management insights into FY26 demand [sources: Media reports, HDFC Securities].

Tech Mahindra: Technical Stability Meets Institutional Confidence

Tech Mahindra’s stock chart reveals meaningful technical stability, trading near its 100-week moving average at ₹1,421. The stock finds support at ₹1,395, with resistance zones at ₹1,484 and ₹1,517, and a potential rally target of ₹1,615 contingent on breaking these barriers. Analysts tracking the stock suggest vigilant observation of these levels to identify breakout or breakdown patterns. Options market activity, including strong investor interest at ₹1,480 and rising RSI values, signals bullish sentiment. Strategic trading tactics such as Bull Call Ladder options strategies are recommended to capitalize on gains while hedging risks.
Institutionally, Tech Mahindra has attracted increased investment confidence, most notably from LIC, which raised its stake to 10.84%. This move is particularly noteworthy given the stock has declined 10% year-to-date, reflecting long-term belief in Tech Mahindra’s resilience and digital transformation credentials amid a subdued global tech spending environment.

The company’s innovation leadership is further validated by its six awards at the 2025 Global BankTech Awards, covering categories such as identity verification, metaverse technology, SME API/open banking, tax reporting, and wealth management solutions. COO Atul Soneja attributes these successes to Tech Mahindra’s commitment to delivering secure and intelligent digital platforms tailored for BFSI clients, addressing critical needs in compliance and customer experience.

Strategically, Tech Mahindra’s partnership with Canal Insurance Company targets digital transformation in the North American commercial auto and property & casualty insurance sectors. This alliance leverages Tech Mahindra’s cloud and AI capabilities to streamline operations, enhance self-service, and reduce technological debts—key factors in improving insurer efficiency and customer value delivery.

Macro-level tailwinds include favorable investor responses to recent US Federal Reserve rate cuts, GST reforms, and strengthened India-US trade relations, boosting broader market sentiment and supporting Indian IT stocks.

Investors will closely monitor the upcoming Board meeting on October 14, 2025, where earnings results and future guidance will provide clarity on telecom spending impacts, margin sustainability, and global technology expenditure outlooks.

Critical factors shaping Tech Mahindra’s stock direction include:

Key technical support and resistance levels.

Institutional stake increases signaling confidence.

Accolades reinforcing industry leadership.

Strategic international partnerships.

Macro-economic policies and market sentiment.

Earnings report and guidance expectations [sources: Business Standard, Global BankTech Awards, Tech Mahindra official releases].

Eternal Limited: Expansion and Market Strength Amid Profitability Challenges

Eternal Limited, formerly operating as Zomato, has experienced notable institutional trading activity, highlighted by Goldman Sachs’ recent sale of over 1 crore shares valued at ₹355.32 crore to BOFA Securities. This transaction is part of a wider divestment trend from Goldman Sachs totaling more than 16 crore shares worth nearly ₹924 crore since September. Despite this selloff, Goldman’s own brokerage remains optimistic, maintaining a “Buy” rating with a target price of ₹360, driven by the rapid expansion of Eternal’s quick commerce segment, Blinkit.
The stock itself has demonstrated resilience, hitting all-time highs of ₹343.95 and achieving a 21% year-to-date gain, despite a 90% decline in Q1 FY26 net profit attributed to significant investments in new verticals. Robust revenue growth, fueled by the food delivery and quick commerce platforms, has propelled Eternal into the ranks of India’s most actively traded and highest market capitalization companies, surpassing established names like Tata Motors and Titan.

Brokerages including HSBC corroborate the bullish outlook, reiterating “Buy” ratings while highlighting Eternal’s strategic expenditures as essential for driving future topline growth. Moreover, the company’s compliance with SEBI’s Regulation 74 (5) concerning DP regulations reassures investors about regulatory stability, an important factor in sustaining market confidence.

Analysts interpret the Q1 profit downturn as a deliberate strategic reinvestment rather than a structural problem, reinforcing the narrative of long-term dominance and aggressive growth in quick commerce. The combination of ongoing brokerage support amidst institutional stake reductions points to a robust conviction in Eternal’s business model.

Stock price dynamics are influenced by:

Large-scale block deals and reshuffling among global investment firms.

Steady “Buy” ratings underpinning confidence during expansion phases.

Heavy reinvestment alongside strong revenue gains.

High trading volume and record market capitalization relative to industry peers.

Regulatory adherence and clear management communication supporting operational stability.

Profit volatility linked to growth investment strategies [sources: Financial media reports, Goldman Sachs, HSBC].

Analyst Recommendations & Investor Insights

Outlook and Strategic Takeaways for Investors

For HCL Technologies, the backing of its MIT Media Lab alliance is a key catalyst for upcoming deal wins and innovation-driven growth. Investors should focus on the company’s Q2 results to assess margin trajectories and deal momentum as the IT sector faces global uncertainties.
Tech Mahindra’s near-term stock movement hinges on overcoming technical resistance levels and capitalizing on recent institutional stake boosts. Earnings clarity from the mid-October board meeting will be pivotal in evaluating its capacity to sustain margins and benefit from favorable macroeconomic policies like rate cuts and GST reforms.

Eternal Limited’s journey exemplifies the tension between short-term profit compression due to aggressive reinvestment and long-term market dominance ambitions in the fast-evolving quick commerce space. Continued institutional reshuffling juxtaposed with consistent “Buy” ratings by top brokerages suggests enduring investor faith, making it essential to monitor operational execution and regulatory compliance.