Infosys shares turn flat after hitting record high; here's what investors can do

Infosys Ltd shares rose 1.64 per cent in Tuesday's trade to scale their all-time high value of Rs 1,990.90. As the session progressed, the stock turned flat and was last seen trading 0.02 per cent down at Rs 1,958.20. At this price, it has climbed 26.23 per cent in 2024 so far.

The IT company is slated to announce its quarterly earnings on October 17 (Thursday). Emkay Global has assigned a 'Buy' rating on Infosys with a target price of Rs 2,150. It sees a 4.3 per cent year-on-year (YoY) revenue growth for Infy in the second quarter ended on September 30, 2024 (Q2 FY25). Emkay expects the IT major to post a 7.1 per cent rise in its net profit.

PL Capital has also given a 'Buy' call on Infosys with a target price of Rs 2,180. The brokerage sees 4.9 per cent YoY growth in revenue for Infy in Q2 FY25. The IT firm's profit after tax (PAT) may climb 9.8 per cent, PL Capital stated. Infosys is slated to announce its quarterly earnings on October 17 (Thursday).

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Infosys looked attractive on a longer-term perspective. Any dip should be considered a buying opportunity. Long-term investors can hold on to it despite the short-term headwinds. The management guidance will be crucial going forward."

Technically, support on the counter could be seen at Rs 1,935. Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be Rs 1,935 and resistance Rs 1,990. A decisive close above Rs 1,990 level may trigger a further upside towards Rs 2,050. The expected trading range will be between Rs 1,900 Rs 2,050 for the short term."

Kushal Gandhi, Technical Analyst at StoxBox, said, "The stock has seen modest buying interest. The zone of Rs 1,985-1,975 is acting as an immediate supply zone and with the quarter results announcement pending, it is advisable to consider new entries following the announcement. This will likely determine the price action trend."

The scrip 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 60.32. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, Infy's stock has a price-to-equity (P/E) ratio of 30.07 against a price-to-book (P/B) value of 10.02. Earnings per share (EPS) stood at 65.14 with a return on equity (RoE) of 33.32. Promoters held a 14.61 per cent stake in Infosys as of the June 2024 quarter.