False Nifty Breakout: IT Euphoria Ends in a Sharp Market Collapse

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Infosys-led IT surge fizzles near 25,900 as chartists warn the Nifty breakout was a trap, not a trend

By S JHA

Mumbai, January 16, 2026 — Infosys stock vaults five percent within minutes once in ages. The Bengaluru-based bellwether is known as India’s Accenture. If Accenture leads IT stocks globally, Infosys does the same in India.

As the bell rang, the Infosys stock spurted. Full blast. Steaming. Soon, the scrip had gained over five percent. The stock gave a sense that bad days of the IT scrips are now over.

Tech Mahindra joined the party. The stock soared over five percent. HCL Technologies and Wipro also joined the dance. LT Mindtree created a zone of euphoria of own. The company had bagged a marquee order from CBDT.

The day belonged to the IT stocks. During the mid-session, they cooled. They rested. They paused. And again, they moved. The IT stocks announced that they had conserved energy to own another day in the street.

But indices ran out of the steam soon on Friday. They collapsed on their faces. Nifty erased gains of almost 200 points quickly. Sensex lost gains of almost 700 points. Chartists had warned that 25900 will act as a stiff resistance for the Nifty. They were proved right.

As Nifty approached 25900, bears struck. They pounced with full force. The 50-share index went crashing down. Chartists announced that the market is range bound. That’s the game bulls and bears played on Friday.

“The 25500-25450 zone has emerged as a key support area, providing a cushion against declines. This range is expected to remain a crucial support band in the event of further weakness during the upcoming week,” said Angel One in its post-market commentary shared with clients.

It stated that “the index on the upside continues to face strong resistance in the 25875-25900 range, which coincides with the 50-day EMA. In the absence of a decisive and sustained breakout above this resistance zone, the Nifty50 is likely to trade cautiously, with a consolidative bias.”

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)