Stock Radar: Infosys stocks showing signs of bottoming out after falling over 30% from highs; time to buy?

Infosys Ltd, a key player in the IT sector, appears to have built a strong base around the 1,000 level over the past few months, suggesting that bulls may be gradually gaining control.

Medium-term traders can look to buy the stock for a possible bounce back towards 1,400 levels in the next 3-5 months, suggest experts.

“Infosys (INFY) stock is showing a potential technical reversal near Rs 980–1,000 support, supported by its long-term moving average, a possible double-bottom pattern and bullish monthly RSI divergence,” Ketan Kaushik, Derivative Analyst at MNCL Group, said.


“The research setup identifies Rs 1,400–1,550 as potential targets over 3–5 months, with a closing-basis stop below Rs 980,” he added.

The IT stock which is also part of the BSE Sensex index hit a high of Rs 1,727 on 3rd February 2026, but it failed to hold the momentum. It closed at Rs 1,166 on 5th November which translates into a fall of more than 32%.

The stock has been consolidating around the 1,000 level since June 2026 on the monthly charts, indicating the emergence of a strong support base. This consolidation suggests that a technical bounce-back could be on the cards.

The stock is up more than 3% in a week and over 15% in a month, suggest experts.

In terms of price action, the stock is trading above 5,10,20,30,50, and 100-DMA but below 200-DMA on the daily charts.

The daily Relative Strength Index (RSI) is placed at 58.7. RSI below 30 is considered oversold and above 70 overbought.

The daily MACD is above its center and signal Line, this is a bullish indicator.

Infosys stock has witnessed an extended cyclical correction from its swing highs near the 2,000 level down toward the multi-year support base around 980–1,000. Following this deep pullback, the stock has established a crucial demand floor at this horizontal support zone.

During this corrective phase, the price tested and took strong support along its rising 200-month exponential moving average (200 MEMA).

“The emergence of a strong bullish monthly reversal candlestick off this long-term average indicates robust institutional absorption and long-term demand,” highlighted Kaushik.

“The stock’s price structure is shaping a double bottom reversal pattern at the intersection of the horizontal support and the 200 MEMA, suggesting the completion of the structural corrective cycle and opening the path toward overhead supply levels near 1,400 and 1,550,” he said.

The momentum indicator RSI has formed a bullish divergence on the monthly timeframe—turning upward from the 35–40 level while the price retested long-term support—indicating that downward momentum has waned and buyers are stepping in at key structural levels.

“Investors can look to accumulate Infosys in the 1,140–1,190 zone, targeting an upside of 1,400–1,550 over the next 3–5 months. A stop loss should be placed below Rs 980 on a closing basis,” recommended Kaushik.

Analyst Disclaimer: The views and recommendations are based on the technical analysis provided by MNCL Group. Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.

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