INFY - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.1

📉 Technical Overview

Current Price ₹1,514 is trading well below 50 DMA (₹1,584) and 200 DMA (₹1,655) — indicates clear bearish pressure.

RSI (32.0) — approaching oversold territory, but not yet showing signs of reversal.

MACD (–19.2) — steeply negative, reinforcing downtrend momentum.

Volume is lower than weekly average, suggesting limited participation or weak demand.

💼 Fundamental Insights

Valuation

P/E (23.1) is below Industry PE (29.1) — fairly valued.

PEG (3.58) — suggests overpriced based on growth expectations.

Profitability Metrics

ROCE (37.5%) & ROE (28.8%) — excellent fundamentals.

EPS ₹65.6 backs strong earnings power.

Dividend Yield (2.84%) — attractive for income-oriented investors.

Debt-to-Equity (0.09) — solid financial health.

Quarterly PAT (₹6,921 Cr. vs ₹7,033 Cr.) — minor dip, likely seasonal.

📊 Institutional Activity

FII Holding: –0.97% — foreign investors reducing stake.

DII Holding: +1.07% — domestic buyers showing renewed interest.

🧭 Trading Strategy

📥 Entry Plan (If Not Holding)

Monitor support near ₹1,480–₹1,495.

Ideal entry trigger

RSI rebounds above 37

MACD flattens and histogram shrinks

Volume pushes above 1-week average

📤 Exit Strategy (If Holding)

Short-Term Exit Zone: ₹1,570–₹1,590 (near 50 DMA resistance)

Medium-Term Stretch Target: ₹1,625–₹1,640 (200 DMA zone)

Max Exit Cap: ₹1,675+ — requires clear reversal confirmation (RSI > 55, MACD crossing up)

🔍 Final Take

INFY boasts robust fundamentals and steady cash generation, but current technicals show significant weakness. It’s not ideal for swing trading at the moment unless a reversal sets up convincingly. Better suited for patient accumulation or dividend-oriented investing than short-term speculation.

Want me to scout a few IT-sector stocks showing stronger RSI setups and MACD crossovers? There might be better swing prospects in the pack.

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