Infibeam Avenues shares snap two-day fall, jump 14% today; here's what technical charts indicate

Shares of Infibeam Avenues Ltd rose sharply in Thursday's trade, pausing their two-day slide. The stock surged 14.17 per cent to hit a day high of Rs 19.90 over its previous close of Rs 17.43. At today's high price of Rs 19.90, the scrip was just 1.97 per cent away from its 52-week high of Rs 20.30, a level seen on December 14, 2022. That said, it has gained 54.86 per cent from its one-year low price of Rs 12.85, hit on March 28 this year.

On technical setup, support on the counter could be seen around Rs 17.5-17 levels.

Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One, said, "The stock appears to be in a sideways trend. Only when the scrip scales Rs 20 or breaks above it, we are likely to see a further up move. As far as technical levels are considered, the counter has a short-term support around Rs 17.5-17 and may face stiff resistance near Rs 20."

Market expert Ravi Singh said, "Infibeam is looking strong on technical parameters. Daily and intraday chart formations are suggesting a strong uptrend ahead. Resistance is placed near Rs 25 level and support could be seen near Rs 17 on a daily basis. The short-term moving averages are trading above the current market price and momentum indicators are in the 'Buy' zone. In this scenario, we can see a target of Rs 23 in the near term."

AR Ramachandran from Tips2trades said, "Infibeam Avenues looks bullish on the daily charts with strong support at Rs 17.5. A daily close above resistance of Rs 19 could lead to target of Rs 22.3 in the near term."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 70.97. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 33.34 against a price-to-book (P/B) value of 1.65.

The scrip has an analyst target price of Rs 28, Trendlyne data showed, suggesting a potential upside of 42 per cent in a year. It has a one-year beta of 1.33, indicating high volatility on the counter.

Infibeam provides digital payment services to e-commerce platforms. The company is also engaged in digital lending, cloud storage and providing omnichannel enterprise software to businesses across industries globally. It had a revenue of Rs 2,033 crore in 2022-23 FY23, up 56 per cent year-on-year (YoY).

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

Also read: Hot stocks on October 5, 2023: Zomato, Suzlon Energy, Navin Fluorine, Titan, Marico and more

Also read: Stock recommendations by share market analysts for October 5, 2023: Suzlon Energy, TCS, HDFC Bank & Bank of Maharashtra

Also read: NPCI's pact with UAE’s Al Etihad Payments, PM Modi to launch projects worth Rs 12,600 crore in MP in Top News on October 5: Share markets outlook, ICC World Cup 2023 to begin with ENG vs NZ match

Also read: Top 10 stocks to watch on October 5, 2023: HAL, Nazara Tech, IEX, Timken, Jubilant FoodWorks, Sheela Foam & others