INFY - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.3
| Stock Code | INFY | Market Cap | 6,23,153 Cr. | Current Price | 1,536 ₹ | High / Low | 1,924 ₹ |
| Stock P/E | 21.7 | Book Value | 179 ₹ | Dividend Yield | 2.80 % | ROCE | 40.6 % |
| ROE | 30.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,614 ₹ | DMA 200 | 1,589 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | -0.38 % | PAT Qtr | 8,202 Cr. | PAT Prev Qtr | 7,718 Cr. |
| RSI | 34.7 | MACD | 0.09 | Volume | 3,01,84,046 | Avg Vol 1Wk | 1,13,16,397 |
| Low price | 1,307 ₹ | High price | 1,924 ₹ | PEG Ratio | 3.41 | Debt to equity | 0.05 |
| 52w Index | 37.1 % | Qtr Profit Var | 29.0 % | EPS | 67.5 ₹ | Industry PE | 24.8 |
📊 Infosys (INFY) demonstrates strong fundamentals with high ROCE and ROE, low debt, and consistent profit growth. However, technical indicators show short-term weakness as the stock trades below both 50 DMA and 200 DMA, with RSI near oversold levels. This makes it a reasonably good candidate for swing trading with cautious entry.
💡 Optimal Entry Price: Around 1,500 ₹ – 1,520 ₹ (near support and oversold RSI).
🚪 Exit Strategy: If already holding, consider exiting near 1,620 ₹ – 1,650 ₹ (resistance at 50 DMA) or place a stop-loss below 1,480 ₹.
✅ Positive
- Strong ROCE (40.6%) and ROE (30.3%) highlight efficient capital use.
- Quarterly PAT growth from 7,718 Cr. to 8,202 Cr. shows earnings momentum.
- Low debt-to-equity ratio (0.05) ensures financial stability.
- Dividend yield of 2.80% provides steady returns to investors.
⚠️ Limitation
- Stock trading below 50 DMA (1,614 ₹) and 200 DMA (1,589 ₹) indicates bearish short-term trend.
- PEG ratio of 3.41 suggests valuation is expensive relative to growth.
- RSI at 34.7 shows oversold condition but weak momentum.
📉 Company Negative News
- Decline in DII holding (-0.38%) reflects reduced domestic institutional confidence.
- Stock significantly below 52-week high (1,924 ₹), showing weakness in price action.
📈 Company Positive News
- FII holding increased (+0.19%), indicating foreign investor interest.
- Quarterly profit variation of 29% highlights strong earnings growth.
🏭 Industry
- Industry PE at 24.8 vs. INFY PE at 21.7 suggests INFY is slightly undervalued compared to peers.
- IT sector remains resilient with global demand for digital transformation services.
🔎 Conclusion
Infosys is fundamentally strong but technically weak in the short term. Swing traders may enter near 1,500 ₹ with a target around 1,620 ₹ – 1,650 ₹. Risk management is essential, with stop-loss below 1,480 ₹. The stock offers moderate swing trade potential with a rating of 4.3.