Shares of Infosys dropped in Monday’s trade, after halting their seven-day fall in the previous session. The stock slipped 2.47 per cent to hit a day low of Rs 1,385.70 over its previous close of Rs 1,420.85. At today’s low price of Rs 1,385.70, the scrip traded just 2.23 per cent above than its 52-week low of Rs 1,355.50, hit on September 26 last year. Around 2.22 lakh shares changed hands today, which was lower than the two-week average volume of 3.24 lakh shares. Turnover on the counter stood at Rs 31.09 crore, commanding a market capitalisation (m-cap) of Rs 5,89,909.81 crore.
There were 2,42,499 sell orders on BSE in late deals today against buy orders of 89,169 shares.
Analysts largely remained ‘bearish’ on the counter, suggesting a negative bias in the coming sessions. On the flip side, one analyst said a close above the Rs 1,420 level may lead to a Rs 1,500-plus target in the near term.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Infosys is in a corrective phase for the past few trading weeks. The stock has slipped below the crucial support of Rs 1,400, adding to a bearish quotient. However, on the technical oscillator, the counter has entered the oversold region, implying a halt in the short term. A breach below Rs 1,400 could drag the counter toward its next support zone of Rs 1,350. Hence, we need to keep a close tab on the mentioned levels and act accordingly.”
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “The counter is trading below all key daily exponential moving averages thus hinting negative bias for coming sessions.”
AR Ramachandran from Tips2trades said, “Infosys is very bearish but also oversold on the daily charts with support at Rs 1,376. A close above resistance of Rs 1,420 could lead to targets of Rs 1,520-1,614 in the near term.”
Kotak Institutional Equities has a ‘Buy’ rating for Infosys while pegging it at a fair value of Rs 1,775.
The scrip has an average target price of Rs 1,720.36, Trendlyne data showed, suggesting a potential upside of 22.80 per cent. It has a one-year beta of 1.19, indicating high volatility on the counter.
The stock was last seen trading lower than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 29.55. 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 26.39.
Going forward this week, the upcoming FOMC (Federal Open Market Committee Meeting) meeting — scheduled for March 21 and 22 — would be a key trigger for IT stocks, said Parth Nyati, Founder of Tradingo.
Meanwhile, Indian equity benchmarks fell sharply in late deals today, dragged by metals, technology, banks and financials.
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