KPIT Technologies stock may see more pain amid IT sector weakness

Shares of KPIT Technologies Ltd, once counted among the standout wealth creators in the midcap IT pack, may not be out of trouble yet. For investors sitting on steep losses after the stock’s prolonged fall, the latest technical view suggests that any near-term relief could be limited, with the possibility of another leg down before a durable recovery emerges.

Support, But Not Safety

Responding to a retail investor, who has held the stock for two years at an average cost of Rs 936, JM Financial Services’ Senior Vice President, Derivatives Research, Akshay Bhagwat, told BTTV the broader setup remains weak despite the stock hovering near an important support band.

“The IT space is still not out of the woods,” Bhagwat said, adding that the news flow around the sector remains “pretty concerning.” While KPIT Tech is trading near the Rs 525 zone, he cautioned that this is only a temporary support and may trigger no more than a minor bounce.

Another Dip May Be Ahead

The sharper warning lies in Bhagwat’s downside projection. “Overall, I see this stock heading for one more lows, possibly somewhere around Rs 460, Rs 470,” he said, indicating that the stock may still have unfinished downside from a positional perspective.

That assessment is significant because it shifts the conversation from whether the stock can rebound immediately to whether investors should brace for more pain first. For holders already deep in the red, the message is clear: patience alone may not be enough unless it is paired with a disciplined averaging strategy and a longer holding horizon.

Why KPIT’s Fall Matters

The commentary also reflects the broader stress visible across the IT space in recent months. In the wider market discussion, technology stocks were repeatedly flagged as a weak pocket, even as other sectors such as metals and select financials showed signs of recovery. That divergence matters for KPIT, which sits in the niche but cyclical auto-tech and engineering IT segment.

Bhagwat noted that KPIT had earlier been one of the biggest wealth creators in focused midcap IT, making the current drawdown especially painful for retail investors who entered near higher levels. The stock’s steep correction, he suggested, is not merely company-specific but tied to the difficult phase for the broader IT pack.

What Investors Can Do Now

For long-term investors willing to stay invested, Bhagwat’s advice was tactical rather than outright bullish. “Some more pain is left in the stock,” he said, adding that investors may look to average on dips around Rs 470. However, he was equally clear that “some serious recovery is not seen at least in the next few months” based on the prevailing technical trend.

In other words, KPIT Tech may still reward conviction eventually, but the road to recovery looks uneven and, for now, far from immediate.