Is this the best time to buy IT shares?

Market experts are advising caution on trading positions amid recent sharp declines in the Nifty 50 index, particularly as traders navigate a Monday expiry day in a truncated trading week. In a recent market discussion, an analyst highlighted the absence of strong support at the psychologically significant 25,000 level, based on options data.The analyst noted that the 25,000 put option lacks substantial open interest or "base" compared to higher call strikes like 25,300 and 25,400, which show heavier writing activity.

This suggests that while 25,000 may offer technical and psychological support, it is not strongly defended by option writers. Given the ferocity of the recent fall, the expert refrained from recommending aggressive trades, such as buying puts at lower levels, due to the missing put base. There remains a possibility of the index testing slightly lower levels, but a rebound—potentially driven by short covering—cannot be ruled out, with Monday's expiry dynamics likely to provide clarity.

Expiry days, especially in shortened weeks, often see contrarian behavior, including unexpected pullbacks or upside moves. The analyst suggested a good chance of markets testing higher levels, such as the 25,300 mark, despite the prevailing downward momentum. Overall, the view is to avoid initiating fresh trades immediately, waiting for clearer signals from the session. Shifting focus to the Nifty IT index, which has been one of the few relatively brighter spots amid broader market weakness, the analyst maintained a constructive stance.

The sector remains massively oversold, limiting immediate downside risk and opening the door for a potential rebound. Key resistance stands at 31,000 on the Nifty IT index, a level that has repeatedly acted as a barrier and continues to do so. The recommendation is to consider positional buying in major IT names like TCS and Infosys, with selective interest in mid-tier players such as Persistent Systems or even CCL while a sharp V-shaped recovery is not expected, the oversold condition suggests limited further downside in the near term, making it a potential bright spot for selective exposure.

A decisive close above 31,000 would signal stronger bullish momentum in the sector. This analysis comes against a backdrop of ongoing market volatility in late February 2026, with the Nifty hovering around the 25,300 zone and showing bearish undertones in recent sessions. Investors are urged to monitor expiry-driven movements closely and prioritize risk management in the current environment.