Synopsis: A brutal sell-off in the IT sector has pushed heavyweights like Infosys and HCL Tech into the “Oversold” zone, with RSI levels dropping below 30. This technical analysis explores if these large-cap stocks are nearing a bottom or if investors should wait for further stabilization.
Top Blue-Chip Stocks Crash
The Indian stock market witnessed a significant correction today, February 24, 2026, with the Nifty IT index leading the downward spiral.
Amidst global concerns over AI disruption and shifting U.S. trade policies, several Nifty 50 stocks have seen their Relative Strength Index (RSI) plummet into oversold territory.
The Relative Strength Index (RSI) is a momentum indicator that ranges from 0 to 100. Traders generally consider a stock “oversold” when its RSI falls below 30.
This signal suggests that the recent selling pressure may be overextended. It often preceding a technical bounce or a period of consolidation. Here are the 4 high-market-cap stocks currently trading in the oversold zone:
Infosys Limited
Infosys is India’s second-largest IT services company, providing business consulting, information technology, and outsourcing services.
It is a cornerstone of the Nifty 50 and a primary indicator for the health of the Indian tech export sector.
Following today’s sharp decline, Infosys closed at ₹1,275.50, reflecting a daily drop of 1.90%. Its daily RSI has now hit a deep oversold level of 17.92.
While the stock has seen aggressive distribution, its current RSI level is at its lowest point in months, drawing the attention of value investors looking for a potential upside.
HCL Technologies Limited
HCL Tech is a leading global technology company that helps enterprises reimagine their businesses for the digital age.
The company’s “Supercharging Progress” strategy focuses on digital, engineering, and cloud services.
The stock faced intense pressure today, ending at ₹1,339.20. Its daily RSI has slipped to 17.68, firmly placing it in the oversold bracket.
Despite the price erosion, HCL Tech remains a high-yield large-cap favorite, and potential upside can be see in coming trading sessions based on the RSI formation.
Also Read: Why the Indian Stock Market Crashed Today
Tata Consultancy Services (TCS)
TCS is the largest IT services provider in India and the flagship company of the Tata Group. It is one of the most valuable companies globally in the IT sector, known for its massive workforce and robust long-term contracts.
TCS shares followed the sector-wide rout, closing at ₹2,573.70 with an RSI of 21.21. The stock has breached multiple support levels during this decline.
However, with the RSI trending well below 30, the stock is technically “stretched” on the downside, making it a key candidate for a relief rally.
Tech Mahindra Limited
Tech Mahindra represents the connected world, offering innovative and customer-centric information technology experiences. It is a specialist in the 5G and telecommunications technology space.
Tech Mahindra was among the hardest hit today, closing at ₹1,345.50 with a sharp 6.6% intraday loss. This volatility has pushed its RSI to 18.93.
The stock is currently trading significantly in the oversold RSI suggesting that the current panic may be reaching a climax and an potential upside can be seen.
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