Technology major Infosys stock declined 2.07 percent on Friday amid selling in technology sector. Infosys Limited could see further selling in the coming weeks and we could see the tech major touching fresh 52-week lows. The stock is currently looking weak on technical charts. The long term view is positive but short and medium term outlook is bearish for Infosys. Infosys Limited, a stalwart in India's IT sector, combines steady financial performance with dynamic technical trends. Trading at around ₹1,501.90 with a market cap of ₹6.09 lakh crore, Infosys shows resilience amid market pressures, boasting a P/E ratio of 22.37 and a dividend yield near 2.93%. Recent analyst forecasts project steady revenue growth, supported by strong digital transformation initiatives.

Infosys currently trades with an opening price of ₹1,501.90, with intra-day lows reaching ₹1,467.70. Its market capitalization is a robust ₹6.09 lakh crore. The stock’s 52-week range lies between ₹1,307.00 and ₹2,006.45, reflecting volatility yet steady advancement. At a P/E ratio of 22.37, the valuation suggests moderate growth expectations weighted by earnings strength. The dividend yield stands at a healthy 2.93%, indicating consistent shareholder returns with a quarterly dividend of ₹10.76. Recent analysis by ICICI Direct (April 2022) values Infosys with a target price of ₹2,000 over a 12-18 month horizon, emphasizing digital and cloud capabilities as the growth catalysts. Despite a slight Q4 margin contraction, Infosys exhibits solid fundamentals, including double-digit return ratios and strong cash generation, while facing industry-wide challenges like attrition and rising subcontracting costs.

Candlestick Pattern Analysis

Examining daily candlestick charts reveals mixed signals for Infosys. The presence of occasional long lower shadows or “hammer” candlesticks at recent lows around ₹1,467 suggests buying interest and potential price reversal points. Conversely, some days showcase bearish engulfing patterns indicating short-lived profit booking or selling pressure near ₹1,500-1,520 levels. This candlestick interplay signals a technical consolidation phase, with the market participants indecisive but leaning towards cautious optimism. Traders can monitor these patterns for short-term entry or exit signals, especially near crucial Fibonacci and support levels.

Detailed Fibonacci Retracement Levels

Based on the 52-week high of ₹2,006.45 and the low of ₹1,307.00, Fibonacci retracement levels provide precise price zones to watch:

These levels act as significant support or resistance benchmarks, with the 61.8% retracement near ₹1,574 particularly critical as a strong support line. The price hovering around ₹1,501 suggests proximity to a support zone between the 61.8% and 78.6% levels, a key decision point for the next directional move.

Support and Resistance Levels

Using classical and Fibonacci pivot points from recent data, key support and resistance for Infosys are:

The immediate resistance near ₹1,513-1,525 is notable; breaking this zone could trigger bullish momentum. On the downside, support around ₹1,457-1,458 represents a safety net, with further fallback near ₹1,445 and beyond. These levels guide traders in risk management and entry points.

Competitive Landscape Insights

Infosys competes vigorously with IT heavyweights such as Tata Consultancy Services (TCS) and Wipro Limited. TCS remains a dominant sector leader with a larger market cap and higher P/E, supported by resilient revenue growth and higher margin profiles. Wipro, meanwhile, is making strides with aggressive digital transformation and cost efficiency initiatives. Investors often compare these stocks to balance growth, valuation, and dividend income strategies in their portfolios.

Actionable Investment Strategies

Given the consolidation near crucial Fibonacci and support levels, investors might consider Infosys as a strategic buy on dips around ₹1,450-1,470 with an eye on the ₹2,000 target over the medium term, as forecasted by leading analysts. The near-term candlestick signals warrant caution, suggesting that buyers wait for a confirmed bullish breakout above ₹1,515 before increasing exposure. Meanwhile, stop-loss orders slightly below ₹1,445 can mitigate downside risk. Long-term holders can view Infosys’s robust digital segment growth and strong return ratios as a cornerstone for stable portfolio growth.