Produced by: Prashun Talukdar
Infosys Ltd shares on Tuesday continued their downward move for the third consecutive session. The stock slipped 3.65 per cent to settle at Rs 1,414.75. At this price, it has declined 6.10 per cent in three trading days and 11.71 per cent in the past one month.
The Bengaluru-based IT major is scheduled to announce its quarterly (Q4 FY24) results on April 18 (Thursday). Domestic equity benchmarks will be closed on Wednesday (April 17) due to Ram Navami. Last week, Tata Consultancy Services (TCS) kicked-off the corporate earnings season on a positive note by reporting better-than-expected results.
Infosys is likely to report a flattish March quarter profit. Analysts from Sharekhan said Infosys Q4 profit may fall 0.4 per cent to Rs 6,102 crore from Rs 6,128 crore year-on-year (YoY). "The IT firm is expected to report decline of 0.5 per cent in constant currency (CC) revenue due to weakness in discretionary spends and lower contribution from large deals," the brokerage stated. Ahead of quarterly results, Kotak Institutional Equities has a target of Rs 1,790 on Infy. Antique Stock Broking finds the stock worth Rs 1,675 per share. Sharekhan and Nuvama Institutional Equities see Infosys at Rs 1,850.
On technical setup, support on the counter could be seen at Rs 1,400, followed by Rs 1,355 level. Immediate resistance may be found at Rs 1,445. The counter traded lower 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 24.62. A level below 30 is defined as oversold while a value above 70 is considered overbought.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher: "The stock has witnessed a decent erosion in the last two months from Rs 1,730 level. With a bearish view at present, the next major support visible is near Rs 1,355. On the upside, it needs to decisively cross Rs 1,500 zone to establish conviction and anticipate for a further rise." Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers: "Immediate support will be at Rs 1,400 and resistance at Rs 1,445. A decisive close above the Rs 1,445 level may trigger a further upside till Rs 1,475."
On BSE, around 10.98 lakh shares changed hands during the last session. The figure was higher than the two-week average volume of 3.85 lakh shares. Turnover on the counter came at Rs 157.19 crore, commanding a market capitalisation (m-cap) of Rs 5,87,243.97 crore.
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