Infosys shares have experienced notable fluctuations recently, particularly on October 18, 2024. On this day, the stock was trading at ₹1884.25, reflecting a significant decline of 4.33% from the previous close of ₹1969.50. This drop translates to a net change of ₹-85.25, indicating a bearish trend in the market.
Main Points
As of October 18, 2024, Infosys shares are priced at ₹1884.25. The stock had reached an intraday high of ₹1978.00 and a low of ₹1930.00 in the previous trading session on October 17, 2024. The company’s market capitalization stands at approximately ₹8177.65 crore, with a 52-week high of ₹1990.90 and a low of ₹1352.00.
Key Support and Resistance Levels
Investors should pay attention to the following key levels:
- Resistance Levels:
- R1: ₹1988.33
- R2: ₹2007.17
- R3: ₹2036.33
- Support Levels:
- S1: ₹1940.33
- S2: ₹1911.17
- S3: ₹1892.33
These levels are crucial for understanding potential price movements in the coming days.
Reasons for Today’s Bearish Trend
The primary reason behind the bearish sentiment surrounding Infosys shares today is the company’s recent quarterly results and revised guidance for FY25. Despite reporting a net profit increase of 2.2% quarter-on-quarter to ₹6,506 crore for Q2 FY25, the revenue growth was not as robust as expected.
- Revised Revenue Guidance
Infosys raised its revenue guidance for FY25 from 3-4% to a more modest range of 3.75-4.5%. This adjustment indicates expectations of slower growth in the second half of the financial year, which has led to investor concerns about future performance. - Market Reaction to Earnings Report
Following the earnings report, analysts noted that while there was an increase in net profit and revenues, the overall performance fell short of market expectations, particularly regarding revenue forecasts for upcoming quarters. - Decline in Total Contract Value (TCV)
The company reported a significant drop in TCV by 41.5% quarter-on-quarter and 68.8% year-on-year, which raises red flags about future revenue streams and client demand.
Despite the current decline, several analysts maintain a positive outlook on Infosys:
- Nomura has retained its “Buy” rating with a target price of ₹2130, citing potential improvements in discretionary IT service demand.
- Motilal Oswal also maintains a “Buy” rating with a target price of ₹2200, highlighting that Infosys is well-positioned to benefit from increased IT spending.
- Conversely, Investec has issued a “Sell” rating with a reduced target price of ₹1700, reflecting concerns over lackluster growth catalysts moving into H2 FY25.
