Infosys shares up 20% in 2024 so far; can this IT stock revisit record high level?

Shares of Infosys Ltd on Monday closed 0.26 per cent higher at Rs 1,864.10. Considering today's closing price, the stock has climbed 20.17 per cent on a year-to-date (YTD) basis. Despite the mentioned rise, the scrip was down 2.04 per cent from its all-time high price of Rs 1,903, a level seen on July 29, 2024.

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 (Q1 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.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities said a majority of IT stocks have been resilient. "Currently, they are showing a positive trend from a medium- to long-term perspective. The quarterly results were largely subdued. But, the probability of an interest rate cut in the US is very high. So, investors should add quality IT stocks on every dip," he suggested.

On technical setup, support on the counter could be seen at the Rs 1,830-1,750 zone. With that being said, resistance may be found in the Rs 1,880-1,900 range. A decisive close above Rs 1,900 can only trigger further upside.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "INFY has seen a strong surge in the last couple of months from Rs 1400 to Rs 1,900 subzone. The counter then underwent some profit booking. It has once again gauged momentum and reverted to reclaim its lifetime high. From a technical standpoint, the stock has been in an uptrend and is likely to continue its momentum, with dips presenting buying opportunities. In terms of specific levels, support is expected in the Rs 1,800-1,750 range, while a clear breakout above Rs 1,900 would signal the next leg of the rally."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,830 and resistance at Rs 1,880. A decisive close above Rs 1,880 level may trigger a further upside towards Rs 1,900. The expected trading range will be between Rs 1,800 and Rs 1,900 for the short term."

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 65.50. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a price-to-equity (P/E) ratio of 28.62 against a price-to-book (P/B) value of 9.53. Earnings per share (EPS) stood at 65.14 with a return on equity (RoE) of 33.32.