Infosys shares seem ready for a breakout rally based on technical analysis, with a price target of ₹1665 representing 6.5% upside from current levels. Multiple technical indicators are flashing buy signals, pointing to building momentum.
Infosys (NSE: INFY) stock has formed a rounding bottom pattern on the charts recently, typically a bullish signal pointing to a potential change in trend. This was combined with an increase in trading volumes, adding credibility to the pattern.
After consolidating between ₹1490 and ₹1540 over the past few months, Infosys shares have broken out to the upside. The current market price of ₹1564 indicates the rally may have already begun.
Infy Stock Seeing Strong Bullish Momentum
The momentum is clearly on the side of buyers at the moment, with the stock poised to test resistance around ₹1665. This would translate to 6.5% returns from current levels.
As we analyze the technical landscape, the stock has key support around ₹1510. As long as Infosys holds above this level on a closing basis, the foundations look strong for a continued move higher.
Key Moving AveragesAligned Bullishly
The stock is trading constructively above all key exponential moving averages (EMAs). This includes the 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA.
When a stock trades above these short-term and long-term averages, it signals overall bullish momentum. Infosys has ticked these boxes.
Oscillators Supportive of Further Gains
Momentum oscillators like the Relative Strength Index (RSI) and Stochastic RSI are demonstrating bullish signals. The daily RSI reading is presently at 65.4 as it moves higher, consistent with strong upside momentum.
At the same time, the Stoch RSI shows a positive crossover, typically pointing to a continuation of the prevailing uptrend. These indicators suggest Infosys stock has room to appreciate further.
How to Trade Infy Shares
Infosys stock offers an attractive risk-reward proposition at current levels. Traders can look to buy on dips around ₹1524 to ride the upside towards ₹1665. The stop-loss can be placed just below crucial support at ₹1510.
- Buy Range: ₹1524-1564
- Target: ₹1665
- Stop Loss: ₹1510
In conclusion, Infosys stock looks poised for a breakout based on multiple bullish technical factors. A rally towards ₹1665 looks achievable, translating to 6.5% returns from the current market price.