COFORGE.NS Stock Today: February 25 – AI Rout; CLSA Favors Coforge
The Coforge share price fell nearly 6% on 25 February as the Nifty IT index slumped in a broad selloff tied to AI disruption fears. The first move in COFORGE.NS extended 5-day losses to about 14% and 1-month to 26%. Turnover spiked above 10 million shares, far above the 2.4 million average. Despite the pressure, CLSA said the AI worries look overdone and kept Coforge among its selective preferences. With volatility high, investors tracked the Coforge share price into the close for clues on direction.
What drove today’s fall in Coforge?
The selloff followed fresh AI claims that raised fears around disruption of traditional IT services. The Nifty IT index fell sharply, with investors questioning near-term demand and pricing. Reports flagged the steepest February drop for the index since 2008, underscoring stress across IT names Moneycontrol and Times of India. The Coforge share price tracked this risk-off move.
Large-caps like TCS and Infosys were among top losers, and investors also watched the HCL share price for signs of spillover. Mid-tier stocks with premium valuations corrected faster. The Coforge share price underperformed as multiples de-rated. We note broader IT weakness can create false starts in rebounds. Keep an eye on HCLTECH.NS and other peers for read-through on sector sentiment.
Valuation and fundamentals after the selloff
After the drop, Coforge trades near 36x trailing EPS with a dividend yield around 1.30% and modest leverage. Return on equity sits near 16%. The Coforge share price correction compresses price-to-sales to roughly 2.7 and price-to-book to about 5.9. Quality metrics remain solid, but revenue mix, deal momentum, and client budgets will steer how quickly margins and growth re-accelerate.
CLSA said AI fears look overdone and kept Coforge on its selective list, implying comfort with the business mix and execution. The call suggests upside if sentiment normalises and deal flow stabilises. For investors, this places the Coforge share price in a setup where positioning, not just valuation, can drive returns as the sector resets expectations.
Technical picture and key levels to watch
The Coforge share price is technically oversold. RSI is 17.6, Stochastic %K is 3.7, and Williams %R is at -96.8, while ADX near 39.8 signals a strong downtrend. MACD remains negative. Oversold does not guarantee a bounce, but it often precedes sharp, short-lived recoveries. Traders should wait for confirmation through higher lows or a close above near-term resistance.
Price tested the lower Bollinger Band near 1,200, close to the 52-week low at 1,194. The intraday high near 1,282 is first resistance. Above that, the 50-day average near 1,643 and the 200-day near 1,739 are major hurdles. Volume surged to about 10.45 million versus a 2.41 million average, showing heavy supply as the Coforge share price slid.
How to think about positioning now
The setup favors disciplined risk control. A sustained hold above 1,282 could invite a relief rally toward higher moving averages, but failure there may cap upside. A decisive break below 1,194 risks further downside. Given volatility, consider staggered entries and tight stops. The Coforge share price can whipsaw until the sector narrative stabilises.
Consider gradual accumulation only if your thesis on client budgets, deal wins, and sector relevance holds. Watch the May 5 earnings date for demand and margin commentary. AI could compress low-end work but may expand higher-value services. Keep diversification and a 12-24 month view. The Coforge share price may base before any durable uptrend emerges.
Final Thoughts
The Coforge share price fell with the Nifty IT index as AI disruption fears drove a sharp reset in expectations. Liquidity was heavy, momentum is oversold, and support around 1,194 to 1,200 is pivotal. Resistance sits near 1,282, then the 50-day and 200-day averages. Fundamentally, Coforge still posts solid return ratios, low leverage, and a modest yield. CLSA’s supportive stance points to potential upside if sentiment steadies. Near term, trade with clear stops and focus on confirmation signals. For investors, consider staggered buys only if the long-term case remains intact and watch sector updates, peer moves, and the upcoming earnings print for catalysts.
FAQs
Why did the Coforge share price fall today?
It dropped as the Nifty IT index slid on AI disruption fears, prompting broad selling and multiple de-rating across Indian IT services. Heavy volume and risk-off sentiment amplified the move. Investors are reassessing near-term demand, pricing, and project mix while waiting for clearer signals from upcoming management commentary and earnings.
Is the Coforge share price attractive after this decline?
Technicals show oversold readings, which can spark short-term bounces. Longer term, Coforge carries solid return ratios and low leverage, but trades near 36x trailing EPS. Consider staggered entries, clear risk limits, and a 12-24 month view. Upside depends on deal momentum, budget trends, and how fast sector sentiment improves.
What key levels should traders watch on the Coforge share price?
Support sits near 1,194 to 1,200, aligning with the 52-week low and the lower Bollinger Band. First resistance is around 1,282. Above that, the 50-day near 1,643 and 200-day near 1,739 matter. Volume spiking to about 10.45 million versus a 2.41 million average shows strong participation in the move.
How could AI disruption affect Coforge and Indian IT?
AI may compress lower-end, manual work while lifting productivity and demand for higher-value services. Near term, pricing and seat-based contracts face pressure. Over time, firms that productise, automate, and win AI-led deals can offset risks. Watch deal mix, large deals, and commentary on automation-led revenue share.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.