Synopsis : India’s IT sector is rebounding after a sharp correction, with midcap leaders Birlasoft and Persistent Systems showing strong bullish signals. Technical breakouts, momentum gains, and investor confidence are aligning as these stocks emerge as potential front-runners in the sector’s revival.
After a turbulent start to 2025 that saw the Nifty IT index plunge 33% from its December 2024 high of 46,088 to a March low of 30,900, India’s IT sector is finally showing strong signs of recovery. Since April, the index has been steadily forming higher tops and higher bottoms, recently crossing above its 100-day moving average and forming a bullish inverted head and shoulders pattern, signalling a potential robust comeback for the sector.
Amid this recovery, two midcap IT stocks—Birlasoft and Persistent Systems—are emerging as key leaders to watch in the sector’s next uptrend.
Birlasoft
Birlasoft has staged a textbook comeback, rebounding from ?330 in April 2025 to ?450 in June, a sharp 35% gain in just two months. The stock has broken out of an ascending triangle, reclaimed its 100DMA for the first time since December 2024, and witnessed rising volumes on up-days, indicating strong institutional and retail participation. With the RSI now above 60, Birlasoft’s momentum and bullish patterns suggest further upside potential, making it a midcap stock firmly back in the spotlight.
Persistent Systems
Persistent Systems has demonstrated resilience after dropping from ?6,790 in December 2024 to ?4,150 in March 2025, with the stock now surging over 50% and consolidating near its recent highs. The formation of an inverted head and shoulders breakout pattern, solid support at the 200DMA, and momentum RSI back above 60 are pointing toward building strength. Persistent Systems’ track record and technical positioning indicate it could be gearing up for its next significant move.
Midcaps Leading the Rebound
While large-cap IT stocks often dominate the headlines, it is midcaps like Birlasoft and Persistent Systems that are showing agility and strong technical formations during the IT sector’s recovery. Their impressive technical strength, clear breakout patterns, and improving market sentiment make them strong contenders for investors looking to participate in the sector’s next potential rally.
As India’s IT sector writes its recovery story, Birlasoft and Persistent Systems are not just signals of a comeback; they represent potential leadership in the evolving landscape of India’s technology resurgence.
Disclaimer : This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
