INFY - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | INFY | Market Cap | 4,94,945 Cr. | Current Price | 1,221 ₹ | High / Low | 1,728 ₹ |
| Stock P/E | 17.3 | Book Value | 179 ₹ | Dividend Yield | 3.52 % | ROCE | 40.6 % |
| ROE | 30.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,405 ₹ | DMA 200 | 1,522 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | -0.38 % | PAT Qtr | 8,202 Cr. | PAT Prev Qtr | 7,718 Cr. |
| RSI | 27.4 | MACD | -58.6 | Volume | 99,19,392 | Avg Vol 1Wk | 1,09,53,246 |
| Low price | 1,215 ₹ | High price | 1,728 ₹ | PEG Ratio | 2.71 | Debt to equity | 0.05 |
| 52w Index | 1.11 % | Qtr Profit Var | 29.0 % | EPS | 67.5 ₹ | Industry PE | 20.8 |
📊 Infosys (INFY) presents a mixed outlook for swing trading. The RSI at 27.4 indicates oversold conditions, which could trigger a short-term rebound. However, the MACD (-58.6) and the fact that the stock is trading below both its 50 DMA (1,405 ₹) and 200 DMA (1,522 ₹) suggest bearish momentum. The optimal entry price would be close to the recent low of 1,215 ₹. If already holding, consider exiting near 1,400–1,450 ₹, where resistance is expected, unless momentum strengthens significantly.
✅ Positive
- Strong ROCE (40.6%) and ROE (30.3%) indicate efficient capital use.
- Low debt-to-equity ratio (0.05) ensures financial stability.
- Dividend yield of 3.52% provides steady income.
- Quarterly profit growth (PAT up from 7,718 Cr. to 8,202 Cr.).
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA.
- Negative MACD reflects weak momentum.
- PEG ratio of 2.71 suggests valuation is stretched.
- Decline in DII holding (-0.38%).
📉 Company Negative News
- Technical weakness with RSI oversold and MACD negative.
- Stock price far below 52-week high of 1,728 ₹.
📈 Company Positive News
- EPS of 67.5 ₹ shows strong earnings power.
- FII holdings increased (+0.19%), signaling foreign investor confidence.
- Stable dividend payout supports long-term investors.
🏭 Industry
- Industry PE at 20.8 vs. INFY’s PE of 17.3 suggests relative undervaluation.
- IT sector remains resilient with global demand for digital transformation.
🔎 Conclusion
Infosys has strong fundamentals but weak technical signals. For swing trading, it is a cautious candidate. Entry near 1,215 ₹ could be favorable if reversal signs appear. Exit strategy should target 1,400–1,450 ₹ unless bullish momentum builds. Long-term investors may continue holding due to strong fundamentals, but short-term traders should remain cautious.