Infosys shares hit 6-year low intraday; here’s how you should trade

Fresh updates from the financial markets indicate that Infosys shares hit a six-year low of Rs 980.40 per share on the NSE during Tuesday's market session, before recovering to settle at Rs 1,015.40, up 1.2 percent.

From the day's low, the stock recovered 3.57 percent to close elevated.

Infosys was the only stock among the Nifty IT constituents to end the session in the green, while the Nifty IT index closed 1.5 percent softer.

Shares of LTIMindtree and Mphasis declined up to 4 percent.

Mayank Jain, Market Market observer at Share.Market by PhonePe, stated the daily chart of Infosys reveals a clear downward trend, marked by a series of softer highs and softer lows.

"All major moving averages—the short-term 20-day, medium-term 50-day, and long-term 200-day—are sloping downward, which keeps the overall directional bias tilted to the downside," he stated.

"The short-term moving average line at present acts as dynamic resistance, preventing sustained upward momentum whenever the price attempts to recover," Jain further noted.

He stated the stock is at present testing a critical demand level around the Rs 980-1,000 backing zone.

"At the current level of Rs 1,015.4, there is a reasonable probability of temporary price stabilisation or a short-term relief bounce towards the Rs 1,100-1,150 range as buyers step in at historical backing," Jain stated.

"That stated, if the price closes decisively below the Rs 980 level on firm volume, the probability of further downside continuation towards softer price marks increases significantly," he further noted.

On the upside, any recovery faces firm supply around the previous breakdown level of Rs 1,180-1,200, marked by the resistance band.

"The probability of a complete trend reversal back to a bullish structure stays low until the stock reclaims this Rs 1,200 resistance region and moves above its long-term 200-day moving average," Jain stated.

"Overall, the current chart structure places elevated chances on range-bound consolidation or continued selling pressure rather than an immediate firm uptrend," he further noted.

"Infosys itself says it is accelerating investments in AI, talent and platforms, while Q1 FY27 margin was still healthy at 21.1 per cent. These investments can keep near-term expansion and margin expansion under pressure," Paul stated.

"The fundamental outlook is not positive. Technically additionally, the structure stays weak," stated Prasenjit Paul, Fund Manager at 129 Wealth & Research and Market observer at Paul Asset.