Infosys shares up 18% in a month; here's what investors can do

Shares of Infosys Ltd have gained nearly 18 per cent in the past one month. The stock was last seen trading 0.19 per cent lower at Rs 1,868.65 on Tuesday. At this price, it has climbed 17.54 per cent in a month and 20.46 per cent on a year-to-date (YTD) basis. Despite the mentioned rise, the scrip has slipped 1.81 per cent from its recent 52-week high value of Rs 1,903, a level seen in yesterday's trade.

The IT major recorded a 7.1 per cent year-on-year (YoY) rise in its first-quarter profit for the ongoing financial year 2024-25 (FY25). Profit during the June 2024 quarter came at Rs 6,368 crore against Rs 5,945 crore in the year-ago period.

In Q1 FY25, revenue grew 3.6 per cent YoY at Rs 39,315 crore compared with Rs 37,933 crore in the corresponding quarter of last year. Infosys also raised its revenue growth forecast for FY25.

Technical analysts largely remained positive on the stock for the near term with 'some' hiccups. With that being said, support could be seen at Rs 1,850, followed by Rs 1,840, Rs 1,800 and Rs 1,730 levels.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a strong rally in the last two months. It can find resistance or maybe some consolidation at Rs 1,950 level. Although, the bias is maintained strong and one can expect a further rise with near-term support at Rs 1,730. A breach above Rs 1,950 shall trigger a fresh upward move for the next higher targets of Rs 2,080 and 2,200 levels. Although, a decisive breach below the Rs 1,730 zone shall negate this view."

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, suggested that the stock can trade in the Rs 2,000 range over a short- to medium-term period. Intermediate support lies around Rs 1,800 levels, followed by sacrosanct support at the Rs 1,730-1,700 zone, Krishan added.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Infy shares can hit Rs 1,920 level in the near term. Keep stop loss placed at Rs 1,840."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,850 and resistance at Rs 1,900. A decisive close above Rs 1,900 level may trigger a further upside towards 1950. The expected trading range will be between Rs 1,800 and Rs 1,950 for the short term."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 83.51. 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 28.74 against a price-to-book (P/B) value of 9.58. Earnings per share (EPS) stood at 65.14 with a return on equity of (RoE) 33.32.

As of June 2024, promoters held a 14.61 per cent stake in the IT company.