INFY - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

💻 INFY shows strong fundamentals and neutral technicals. Entry near ₹1,440–₹1,455 is optimal. If already held, consider exiting near ₹1,520–₹1,550.

📈 Positive

• ROCE 40.6% and ROE 30.3% — excellent capital efficiency
• EPS ₹64.7 and P/E 22.7 — undervalued vs industry PE of 29.7
• Dividend yield 2.93% — attractive income potential
• MACD 0.26 and RSI 44.9 — neutral momentum with upside potential
• Quarterly PAT growth: ₹7,718 Cr. vs ₹6,114 Cr. — up 13.3%
• DII holding increased by 2.07% — rising domestic investor confidence

⚠️ Limitation

• Trading below DMA 50 (₹1,493) and DMA 200 (₹1,572) — bearish bias
• PEG ratio 3.56 — valuation not fully justified by growth
• FII holding declined by 1.84% — reduced foreign investor interest

🚫 Company Negative News

• Stock down ~27% from 52-week high of ₹2,007
• Muted global IT spending outlook may weigh on near-term sentiment

✅ Company Positive News

• Strong Q2 performance with margin expansion and deal wins
• Positive outlook on AI-led digital transformation and cloud services
• Analysts expect recovery toward ₹1,600+ with improving global tech demand

🏭 Industry

• IT services sector benefits from digital transformation, AI adoption, and global outsourcing trends
• INFY trades below industry PE (29.7) — offers relative value

🧾 Conclusion

• INFY is a technically consolidating but fundamentally strong swing candidate
• Best entry: ₹1,440–₹1,455 near RSI base and support zone
• If already held, exit near ₹1,520–₹1,550 — resistance zone below DMA 200
• Watch for RSI >50 and MACD continuation for breakout confirmation

I can also compare INFY with peers like TCS and Wipro to help you spot stronger swing setups.