Shares of Tata Consultancy Services (TCS), India's largest IT services company, surged as much as 7% to Rs 2,457 on the BSE on Tuesday, extending gains for a second straight session. The stock has climbed nearly 9% over the past two trading days, rebounding sharply after months of underperformance amid growing optimism around artificial intelligence.While analysts continue to debate the future of IT companies following fresh AI advancements, investors were quick to analyse the cheap valuations, leading to some pockets of buying. Nuvama, in its note, had highlighted that the IT sector is setting up for a powerful comeback, not a collapse after the brutal AI-driven selloff.“We see no existential threat from Gen-AI,” the brokerage writes, arguing that enterprises will still need a “system integrator” to customise plug-and-play AI and software tools for their highly complex, brownfield technology stacks and to take ownership when “the system fails at 2 am.”After a strong run up, is this the right time to enter TCS shares?According to Virat Jagad, Senior Technical Research Analyst at Bonanza, TCS has witnessed a strong demand reversal after decisively breaking above its immediate horizontal resistance level of Rs 2,348.75. The move was accompanied by a sharp spike in volumes and a strong recovery in the RSI, which climbed above 55 from near-oversold levels, indicating improving momentum. He noted that the stock has also reclaimed its short-term exponential moving averages (EMAs), suggesting that a near-term bottom may be in place. Jagad recommends fresh entries in the Rs 2,420-2,445 range, with upside targets of Rs 2,600 and Rs 2,720, while maintaining a strict stop loss at Rs 2,290.Ajit Mishra, SVP at Religare Broking said that TCS has been trading in a well-defined long-term downtrend and has remained below its key moving averages for an extended period, reflecting the broader weakness in the IT sector. However, he highlighted that the stock has recently staged a strong rebound from the Rs 2,200-2,250 support zone, supported by a bullish candlestick formation and a significant rise in trading volumes, indicating aggressive buying at lower levels. The RSI has also recovered sharply from oversold territory, pointing to improving momentum. While the broader trend remains corrective, Mishra believes the current recovery could extend towards the Rs 2,600 level, where the 100-day moving average is positioned. He added that the positive bias would weaken if the stock fails to hold above the 20-day EMA near Rs 2,330.Harshal Dasani, Business Head at INVasset PMS, believes TCS has witnessed a sharp relief rally, but the overall technical setup still points to a temporary rebound rather than a sustained trend reversal. While the stock's move above its short-term moving average lends some tactical strength to the recovery, it continues to trade below its longer-term trend line, indicating that the broader structure remains weak. Dasani sees immediate resistance in the Rs 2,450-2,460 zone and said that only sustained closes above this range would support a stronger recovery. On the downside, he cautioned that a fall below Rs 2,400 would suggest the recent upmove is more of a dead-cat bounce than evidence of meaningful accumulation.From an index perspective, Jatin Gedia of Teji Mandi said the Nifty IT index has given a breakout from an Inverted Head and Shoulders pattern, a widely tracked bullish reversal formation. The breakout was further confirmed by follow-through buying above the neckline during Tuesday's session, indicating strengthening momentum in the index. According to Gedia, the pattern places the IT index in a position of technical strength and points to a target range of 32,300-32,500. From the current level of around 31,050, this implies a potential upside of approximately 3.5-4% in the near term. TCS share price performanceTCS shares have fallen nearly 25% since the start of the year and about 30% in the last 1 year. TCS reported a 12% year-on-year rise in consolidated net profit at Rs 13,718 crore for the fourth quarter, while revenue from operations increased 10% YoY to Rs 70,698 crore. The company also announced a final dividend of Rs 31 per share.During the quarter, TCS secured three large deals, taking the total contract value to $12 billion for the period. On a quarter-on-quarter basis, revenue grew 5.4%, while constant currency growth came in at 1.2%, broadly in line with expectations. Operating margin for the January to March quarter stood at 25.3%, up 10 basis points from the previous quarter. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)