Shares of Infosys Ltd have slipped more than 10 per cent on a year-to-date (YTD) basis, underperforming a 4.5 per cent rise in benchmark index BSE Sensex. Nearly 5 per cent of the said drop in Infosys shares came during the last one month. The stock was last seen trading 0.69 per cent lower at Rs 1,367.80 today. At this price, the scrip was up 12.54 per cent from its one-year low of Rs 1,215.45, a level seen on April 25 this year.
The IT firm recorded a consolidated net profit rose of Rs 6,212 crore in the quarter ended September 30, up 3.17 per cent from Rs 6,021 crore a year ago. However, Infosys reduced its annual revenue forecast, raising concerns about near-term demand. The software-services exporter said it now sees full-year revenue growth at 1-2.5 per cent excluding foreign exchange volatility, against a prior view of 1-3.5 per cent.
Technical analysts largely suggested that the stock looked 'bearish'. Major support on the counter could be seen around Rs 1,300 level. And, a daily close above Rs 1,400 level is required to improve the overall bias.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Infosys has strong support around the Rs 1,300 zone. On the higher end, the 200-SMA (Simple Moving Average) of Rs 1,380-1,390 is likely to be seen as immediate resistance, followed by the Rs 1,435 zone."
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "Immediate support visible near Rs 1,350 zone. A decisive breach below Rs 1,350 could further weaken the trend with the next major support zone lying near Rs 1,300-1,280 levels. For the overall bias to improve, Infosys needs to cross above the Rs 1,405 level."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Going forward, Rs 1,325-1,300 will be a crucial support zone and resistance may be seen near Rs 1,400, followed by Rs 1,440 levels."
DRS Finvest founder Ravi Singh said, "Infosys share price is in bearish trend. The stock may touch Rs 1,250 level in near term."
AR Ramachandran from Tips2trades said, "Infy looks oversold and bearish with strong resistance at Rs 1,403. A daily close above this resistance could lead to Rs 1,463 in the near term. Next support will be at Rs 1,336."
The counter was trading lower than the 5-day, 10-, 20-, 30-, 50-, 100- and 200-day simple moving averages (SMAs) but higher than the 150-day SMA. The counter's 14-day relative strength index (RSI) came at 33.35. 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 23.51 against a price-to-book (P/B) value of 7.82.
The scrip has an analyst target price of Rs 1,524, Trendlyne data showed, suggesting a potential upside of 11 per cent in a year. It has a one-year beta of 1.34, indicating high volatility on the counter.
(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.)
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