Infosys stock sole loser among big three IT firms this year, can it bounce back?

Shares of Infosys Ltd have emerged as the sole losers among the big three IT firms this year. The IT stock is down 5.09% this year. Infosys stock closed at Rs 1,508.7 on December 30 last year. However, Tata Consultancy Services shares (TCS) have risen 7.53% and shares of HCL Technologies have gained 28% during the period. In two years and on a yearly basis too, Infosys stock has fallen 17.73% and declined 8.76%, respectively. On the other hand, TCS and HCL Technologies shares have delivered positive returns in a year and two years. In comparison, the BSE IT index has gained 15.15% in a year.

During the same period, Sensex has gained 7.73% or 4729 points and Nifty has added 8.69% or 1582 points. The Nifty IT index too has gained 13.30% this year.

In the last session, Infosys stock closed 0.22% higher at Rs 1439.40. On Wednesday, Infosys stock touched an intraday high of Rs 1447.95 on BSE. Market cap of Infosys stood at Rs 6 lakh crore on BSE today. Total 0.84 lakh shares of the firm changed hands amounting to a turnover of Rs 12.19 crore on BSE.

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In terms of technicals, the relative strength index (RSI) of the stock stands at 57.4, signaling the stock is neither oversold nor overbought. Infosys has a one-year beta of 0.2, indicating very low volatility during the period. Infosys shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Infy has been consolidating near the cluster of its EMAs (Exponential Moving Averages) on the daily timeframe for quite some time. However, the recent development of a resurgence from 200-SMA (Simple Moving Average) with runaway gaps construes some robust technical setups. On the levels front, Rs 1,370 is likely to cushion any blip, followed by the sacrosanct support of the swing low around the Rs 1350-odd zone. On the higher end, a sustainable breakthrough above Rs 1,400 is likely to provide the much-needed impetus for soaring towards Rs 1,440-1,470 levels in the comparable period."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "As we advance, Rs 1,450 is stiff resistance for the short term and support is expected near Rs 1,350. Buy-on-dips strategy is recommended and a potential upside is expected till Rs 1,450. The stop loss would be at Rs 1,349 on a daily closing basis."

Abhijeet from Tips2trades said, "Infosys is bullish on the Daily charts with next resistance at Rs 1405. A daily close above this resistance could lead to a target of Rs 1462 in the near term. Support will be at Rs 1373."

The IT firm reported a 3.17% rise in consolidated net profit of Rs 6,212 crore in the quarter ended September 30 from Rs 6,021 crore a year ago. Infosys trimmed 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.

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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