Stock Radar: IT Stocks Under Pressure; Traders Can Go Short on Info Edge – Strategy, Target & Stop Loss Explained

India’s IT sector is once again feeling the heat as global cues turn negative and investor sentiment weakens. IT stocks have come under significant pressure, and the mood across the board is cautious. Among the top names under scrutiny is Info Edge Ltd, a well-known player in the IT and internet services space.

Info Edge: From January Highs to a Steady Decline

Info Edge has already dropped more than 30% from its January 2025 highs, reflecting the broader pain in the IT sector. What’s worrying for investors and traders alike is that the chart pattern suggests this downtrend may not be over yet.

Market experts tracking the stock have pointed out continued weakness in the technical structure. Despite brief relief rallies, the momentum remains negative, and sellers continue to dominate. This has opened the door for a short-term trading opportunity — but not in the traditional “buy-the-dip” sense.

Short-term traders are being advised to consider going short on Info Edge for a potential target of ₹6,100 in the April 2025 futures contract.

Why Are IT Stocks Under Pressure?

The pain in the IT sector isn’t limited to Info Edge alone. In fact, the entire IT index has been one of the worst performers lately, with the sector plunging by nearly 9%. A big part of the decline is being attributed to fears around reduced IT spending, especially in the United States, which remains a key revenue driver for most Indian IT firms.

Slowdown concerns and tightening tech budgets across major markets have sparked worry about future earnings, leading to profit booking and fresh short positions.

Investors have become more cautious, and analysts are highlighting that the headwinds for the IT industry could persist in the near future. As global uncertainty continues, especially with economic and geopolitical factors at play, risk appetite for tech and IT stocks has seen a noticeable dip.

Trading Strategy: What Should Traders Do Now?

With Info Edge showing continued weakness, technical analysts recommend shorting the stock with a clear strategy. The suggested approach includes:

• Target: ₹6,100 (April 2025 Futures)

• Time Frame: Next few weeks

• Risk Management: Use a proper stop-loss to minimize downside risk

“This is a tactical trade opportunity, not a long-term call,” say market watchers. Traders are advised to monitor price action closely and stick to the plan with discipline.

Should Long-Term Investors Be Worried?

For long-term investors, the current weakness in Info Edge and the IT sector may look concerning, but it’s important to differentiate between short-term volatility and structural business fundamentals. While traders are capitalizing on momentum and price action, long-term holders may choose to observe how the company navigates this challenging environment before making big portfolio decisions.

Corrections are part of every market cycle. What matters is how strong the recovery will be once clarity returns,” a market expert noted.

Conclusion

The pressure on IT stocks is a reflection of larger global concerns and shifting investor expectations. Info Edge remains in focus, but not for the usual bullish reasons. With charts pointing to more downside, and sentiment still fragile, short-selling has emerged as a practical strategy for opportunistic traders.

However, whether this turns out to be a short-term dip or the start of a deeper correction will depend on how macroeconomic factors evolve in the coming weeks.