Chart Check: Infosys could see a bounce back after 20% fall from 52-week highs; time to buy?

Infosys rose nearly 15 per cent in a year compared to 10 per cent rise seen in Nifty50 but has been under pressure so far in 2022, data showed. The IT bellwether has fallen over 18 per cent since April, and over 20 per cent from its 52-week high of Rs 1,953 recorded on 17 January 2022 to Rs 1,553 recorded on 10 May.

The stock with a market capitalization of more than Rs 6.5 lakh crore is trading close to its crucial support levels which could lead to a technical bounce back in the stock, suggest experts.

Infosys saw a steep fall of over 18 per cent since April. It has been finding support near the Rs 1,500-1,525 levels which acted as a strong demand zone last week.


Slowing global economic growth and high attrition rates that will impact margins are some of the factors which are weighing on IT stocks, suggest experts.

If the stock manages to hold onto crucial support levels of Rs 1,500, then a bounce back towards Rs 1,640-1,680 is possible, suggest experts.

Infosys is trading below crucial short- and long-term moving averages of 5, 10, 20, 50, 100 and 200-DMAs.

“From the last four to five trading sessions, prices have shown a strong demand zone near Rs 1,525 levels and have protected its lower levels,” says Rohan Patil, Technical Analyst at Bonanza Portfolio Ltd.

“In terms of candlestick, prices have formed a bullish reversal engulfing pattern and prices are also finding support near its lower band of the Bollinger band, indicating the possibility of a bounce back,” he said.

Nifty IT index on the daily chart has formed a Bullish ABCD Harmonic pattern and the index is trading near its potential reversal zone (PRZ).

“The momentum oscillator RSI (14) has shown positive divergence near oversold levels and indicator has closed above its average on the daily time frame,” added Patil.

“Short to medium target can be around Rs 1,640 – 1,680 levels and longer-term targets can be around Rs 1,740 levels. A stop loss for the buying position can be kept at Rs 1,500 levels,” he recommends.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)