Infosys shares up 16% in a month; what's next for this IT counter?

Shares of IT major Infosys Ltd were trading 0.68 per cent higher at Rs 1,632 in Wednesday's trade. At this price, the stock has gained 16.08 per cent in the past one month. With that being said, the IT counter has risen around 5 per cent in 2024 so far as against an 11 per cent jump in benchmark BSE Sensex during the same period.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said IT stocks looked attractive on a longer-term basis. Investors can consider stocks such as Infosys for the long term, he mentioned.

Support on the counter could be seen at Rs 1,570, followed by Rs 1,520 and Rs 1,500 levels. Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Support is now shifted to the Rs 1,520-1,500-odd zone. On the higher end, the counter seems poised to test Rs 1,640-1,650 on an immediate basis. The undertone seems buoyant and dips should be utilised to accumulate the stock from a short term view."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock can hit an upside target of Rs 1,640 in the near term. Keep stop loss placed at Rs 1,570."

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 77. 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 24.71 against a price-to-book (P/B) value of 8.29. Earnings per share (EPS) stood at 65.61 with a return on equity of 33.55.

Around 75,000 shares changed hands today on BSE at the time of writing this story. The figure lower than the two-week average volume of 4.65 lakh shares. Turnover on the counter came at Rs 12.08 crore, commanding a market capitalisation (m-cap) of Rs 6,77,611.05 crore.

As of March 2024, promoters held a 14.71 per cent stake in the software services exporter.