INFY - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.3

📊 Chart Patterns: INFY is trading above both its 50 DMA (1,549 ₹) and 200 DMA (1,569 ₹), showing strong bullish momentum. Price action suggests an uptrend with support near 1,600 ₹ and resistance around 1,700–1,720 ₹.

📈 Moving Averages: Current price (1,640 ₹) is comfortably above both 50 DMA and 200 DMA, confirming medium-term strength.

📉 RSI: At 65.8, RSI is approaching overbought territory, suggesting strong momentum but caution for potential pullback.

📈 MACD: Positive (23.4) indicates bullish crossover, supporting upward momentum.

📊 Bollinger Bands: Price is near the upper band, signaling strength but also risk of short-term correction.

📊 Volume Trends: Current volume (72.9 lakh) is higher than 1-week average (56.3 lakh), showing strong participation and accumulation interest.

📌 Momentum Signals: Strong short-term momentum; breakout possible if price sustains above 1,650 ₹.

🎯 Entry Zone: 1,620–1,640 ₹ (near support and DMA levels).

🎯 Exit Zone: 1,700–1,720 ₹ (near resistance trendline).

🔎 Trend Status: Trending upward with bullish bias.

Positive

• Strong ROCE (40.6%) and ROE (30.3%) highlight excellent efficiency.
• Dividend yield of 2.64% adds investor appeal.
• Debt-to-equity ratio is very low (0.04), showing financial stability.
• Quarterly PAT growth of 13.3% (₹7,718 Cr vs ₹6,114 Cr).

Limitation

• RSI near overbought levels (65.8), suggesting caution for short-term traders.
• PEG ratio of 3.98 indicates expensive valuation relative to growth.
• Stock P/E (25.4) is close to industry PE (26.4), showing limited valuation advantage.

Company Negative News

• Decline in FII holding (-2.34%) shows reduced foreign investor confidence.
• High PEG ratio suggests growth may not justify current valuation.

Company Positive News

• Quarterly profits improved significantly (₹7,718 Cr vs ₹6,114 Cr).
• DII holdings increased (+2.11%), showing strong domestic institutional support.
• Strong fundamentals with high efficiency ratios and low debt.

Industry

• Industry PE at 26.4 is close to INFY’s P/E (25.4), suggesting fair valuation relative to peers.
• IT services sector outlook remains positive with digital transformation and global demand growth.

Conclusion

⚖️ INFY is trending upward with strong technical signals, supported by MACD, RSI, and volume. Traders may consider entry around 1,620–1,640 ₹ with exit near 1,700–1,720 ₹. Long-term investors benefit from strong fundamentals, dividend yield, and low debt, though high PEG ratio and reduced FII confidence remain concerns.