INFY - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📉 INFY is consolidating with mild bullish momentum and strong fundamentals, though volume and resistance levels suggest caution.

📊 Technical Analysis

• Trend Status: Consolidating — price is below both 50-DMA and 200-DMA, indicating a sideways trend with weak breakout signals.
• Moving Averages: Price ₹1,485 is slightly below 50-DMA (₹1,494) and well below 200-DMA (₹1,574), suggesting overhead resistance.
• RSI (48.2): Neutral zone, indicating balanced momentum with no strong directional bias.
• MACD (3.19): Mild bullish crossover, hinting at potential upward movement.
• Bollinger Bands: Price near mid-band, consistent with consolidation and low volatility.
• Volume: Current volume (51.5L) is below weekly average (62.8L), showing reduced participation.

🎯 Entry & Exit Zones

• Support Levels: ₹1,460, ₹1,430, ₹1,400
• Resistance Levels: ₹1,494 (50-DMA), ₹1,525, ₹1,574 (200-DMA)
• Optimal Entry: ₹1,460–₹1,480 (on pullback)
• Exit Target: ₹1,525–₹1,574 (resistance zone)

✅ Positive

• Strong ROCE (40.6%) and ROE (30.3%) reflect excellent capital efficiency.
• EPS of ₹64.7 and consistent quarterly PAT growth support long-term valuation.
• Dividend yield of 2.87% adds passive income appeal.
• DII holdings increased by 2.07%, indicating strong domestic institutional interest.

⚠️ Limitation

• Price below key moving averages limits breakout potential.
• Volume below average, suggesting lack of strong conviction.
• PEG ratio of 3.61 indicates overvaluation relative to growth.

📉 Company Negative News

• FII holdings declined by 1.84%, showing reduced foreign investor confidence.
• Stock is down 26% from its 52-week high of ₹2,007, reflecting long-term underperformance.

📈 Company Positive News

• Quarterly PAT increased from ₹6,114 Cr to ₹7,718 Cr, showing strong earnings momentum.
• Price has recovered 13.6% from its 52-week low of ₹1,307.

🏭 Industry

• IT services sector remains resilient with digital transformation and global outsourcing demand.
• Industry P/E (29.6) is higher than INFY’s (23.0), suggesting relative undervaluation.

🧾 Conclusion

• INFY is consolidating with mild bullish signals and strong financial fundamentals.
• Entry near ₹1,460–₹1,480 could offer a tactical setup with targets around ₹1,525–₹1,574.
• Investors should monitor volume and RSI/MACD for signs of breakout or reversal.