Infosys shares at Rs 1,200 or Rs 1,400? Here's what short-term technical analysis hints

Shares of Infosys Ltd on Friday fell for the third consecutive session. The stock today settled 1.32 per cent lower at Rs 1,265.65. At today's closing price, the scrip was up 4.13 per cent from its 52-week low of Rs 1,215.45, a level seen on April 25, 2023. Although, it has declined 24.32 per cent from its one-year high level of Rs 1,672.45, hit on December 1 last year. Around 4.92 lakh shares changed hands today on BSE, which was higher than the two-week average volume of 3.82 lakh shares. Turnover on the counter stood at Rs 62.58 crore, commanding a market capitalisation (m-cap) of Rs 5,25,228.89 crore.

On the technical front, support on the counter could be seen at Rs 1,260, followed by Rs 1,250 and Rs 1,235 levels. On the higher end, a decisive close above Rs 1,305 could only indicate a further up move. That said, the stock may see a substantial hurdle around the Rs 1,310-1,360-odd zone in the near term.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed some profit booking with overall bias maintained neutral. It has got the near-term support at Rs 1,260 levels and from here we can anticipate some pullback. A decisive close above Rs 1,305 is necessary to indicate a breakout for further upward move. On the lower end, if Rs 1,260 is breached, then we have the next major support zone at around Rs 1,235 levels."

Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "Infosys has been in a primary downtrend since last year, forming a series of lower highs and lower lows. The stock, post its big gap-down, is trading in a small channel, showcasing a lack of buying emergence. Also, the technical structure of the stock isn't exciting as it hovers below all its major EMAs (Exponential Moving Averages) and is facing resistance at its gap. As regards to its levels, the stock is likely to face a substantial hurdle around its gap zone of Rs 1,310-1,360 and immediate support in the Rs 1,250-1,260 zone."

Prashanth Tapse, Research Analyst at Mehta Equities, said, "The stock may consolidate more in the current range up to Rs 1,250. A good buy call could be near the Rs 1,250-1,230 range with a target of Rs 1,320, while keeping a stop loss placed at Rs 1,200 levels."

The counter's 14-day relative strength index (RSI) came at 40.79. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 22.87. It has a price-to-book (P/B) value of 7.85.

Yet, the scrip has an average target price of Rs 1,577.08, Trendlyne data showed, suggesting a potential downside of 24.67 per cent. It has a one-year beta of 1.25, indicating high volatility on the counter.

Meanwhile, Indian equity benchmarks extended their fall for the second day, dragged by banks, financials, metals, consumer, automobile, technology and energy stocks. The 30-share BSE Sensex pack fell 260 points or 0.41 per cent to close at 62,979; while the broader NSE Nifty moved 106 points or 0.56 per cent down to end the session at 18,666.

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