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INFY - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.8

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 2.8

Stock Code INFY Market Cap 4,79,294 Cr. Current Price 1,182 ₹ High / Low 1,728 ₹
Stock P/E 16.0 Book Value 199 ₹ Dividend Yield 4.06 % ROCE 45.6 %
ROE 35.7 % Face Value 5.00 ₹ DMA 50 1,310 ₹ DMA 200 1,463 ₹
Chg in FII Hold -1.82 % Chg in DII Hold 2.11 % PAT Qtr 7,975 Cr. PAT Prev Qtr 8,202 Cr.
RSI 35.9 MACD -37.0 Volume 1,34,87,173 Avg Vol 1Wk 1,39,49,961
Low price 1,150 ₹ High price 1,728 ₹ PEG Ratio 1.81 Debt to equity 0.05
52w Index 5.53 % Qtr Profit Var 20.3 % EPS 72.0 ₹ Industry PE 21.6

📊 Chart & Indicators

- Current price (₹1,182) is below DMA 50 (₹1,310) and DMA 200 (₹1,463), showing bearish momentum.

- RSI at 35.9 indicates oversold conditions.

- MACD at -37.0 confirms strong negative momentum.

- Bollinger Bands: price near lower band, suggesting possible support.

- Volume (1.34 Cr.) slightly below average, showing weaker participation.

🎯 Entry & Exit Zones

- **Entry Zone:** ₹1,150 – ₹1,180 (near support, oversold RSI).

- **Exit Zone:** ₹1,300 – ₹1,350 (resistance at DMA 50).

- **Stop-Loss:** Below ₹1,140 (support breakdown risk).

📈 Trend Status

- The stock is **consolidating near support** with bearish bias.

- Short-term reversal possible if price sustains above ₹1,200 and RSI rebounds.

✅ Positive

- Strong ROE (35.7%) and ROCE (45.6%).

- Attractive dividend yield of 4.06%.

- Low debt-to-equity ratio (0.05).

- PEG ratio at 1.81 suggests fair valuation.

⚠️ Limitation

- Price trading below long-term averages.

- Weak momentum indicators (negative MACD, low RSI).

- PAT declined from ₹8,202 Cr. to ₹7,975 Cr.

- FII holdings reduced (-1.82%).

📉 Company Negative News

- Marginal decline in quarterly profits.

- Global IT demand slowdown impacting growth visibility.

📈 Company Positive News

- Consistent dividend payouts.

- Strong balance sheet with minimal debt.

- DII holdings increased (+2.11%).

🏭 Industry

- Industry PE at 21.6 vs INFY’s 16.0, showing undervaluation.

- IT sector facing short-term demand challenges but long-term digital adoption remains supportive.

🔎 Conclusion

Infosys (INFY) is in a **bearish consolidation phase** with oversold signals. Near-term recovery is possible if support at ₹1,150 holds. Fundamentally strong, but technical weakness suggests cautious accumulation at lower levels with strict stop-loss discipline.

This is the short-term technical view. If you’d like, I can also prepare a long-term investment strategy (entry/exit zones for 1–3 years holding) to complement this analysis. Would you like me to add that?

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