Infosys (INFY) – Daily Technical Analysis
Infosys (INFY) is showing signs of a short-term recovery after a prolonged downtrend from July onwards, with the stock closing at ₹1504 after forming a strong bullish candle, highlighting buying interest at lower levels. On the technical front, price action suggests an early bounce as the stock has reclaimed its 20-day moving average (₹1490), though it still trades below the 50-DMA (₹1515) and the 200-DMA (₹1610), keeping the broader trend weak. Indicators are turning supportive, with RSI (14) at 53 reflecting improving momentum, Parabolic SAR shifting below the price giving a buy signal, and MACD showing early signs of a bullish crossover as downside momentum weakens. Key support lies at ₹1470–1450, while immediate resistance is placed at ₹1515, followed by ₹1535, and a major hurdle remains at ₹1570–1600. Sustaining above ₹1515 could open the path toward ₹1570–1600 levels, whereas failure to break resistance may lead to sideways consolidation or a retest of support. In conclusion, the stock carries a short-term positive bias with improving indicators, though the long-term trend remains under pressure; traders may consider buying on dips with a stop-loss below ₹1450, while investors should wait for a decisive breakout above ₹1600 to confirm a trend reversal.
Micro View (Technical & Near-Term Trend)
Infosys stock witnessed a sharp gap-up opening and strong rally on the back of buyback news. On the daily chart, the stock has rebounded from recent lows and closed above ₹1500, with momentum indicators like RSI (53) showing recovery from the oversold zone. The price is trying to reclaim short-term moving averages, and Parabolic SAR has shifted below price action, indicating potential trend reversal. In the near term, if Infosys sustains above ₹1480–1500, it can extend gains toward ₹1540–1560 levels.
Macro View (Sector & Market Drivers)
IT Sector Sentiment: Global IT spending is expected to improve gradually with digital transformation projects and AI-driven demand.
Global Cues: Hopes of a U.S. interest rate cut have lifted emerging market equities and export-heavy Indian IT stocks.
Rupee Impact: A relatively weaker Indian rupee supports revenue growth for Infosys and peers as a large portion of revenues come from overseas clients.
Upcoming Event & Its Impact
Board Meeting (11th Sept 2025): Infosys will consider a share buyback proposal.
Impact: Buybacks usually signal confidence from management, boost EPS, and improve return ratios. This is expected to provide short-to-medium-term support to the stock.
If the buyback price is set at a significant premium, it may drive further upside momentum in Infosys and sentiment across IT stocks.
Conclusion
Infosys is currently at a turning point. Short-term sentiment remains positive due to the buyback trigger and global tailwinds, while the medium-term outlook depends on demand revival in key markets like the U.S. and Europe. Sustaining above ₹1500 is key for continued bullish momentum.
Disclaimer
This analysis is for educational and informational purposes only. It should not be considered investment advice or a recommendation to buy/sell. Markets are subject to risks, and past performance is not indicative of future results.
Disclosure
We, at Investogainer Research, are a SEBI Registered Research Analyst (INH000012856) and also listed with BSE (Code: 5845). We declare that we have no personal/financial interest, holding, or conflict of interest in Infosys Ltd.
Infosys Charts a Bullish Reversal as Board to Consider Buyback On 09092025