Infosys Limited (INFY)

INFY stock forecast: buy or sell

INFY stock outlook

  • Infosys Limited American Depositary Shar stock sliced -1.06% to close at $10.23 on the stock market today, and broke a streak of 9 sessions in green.
  • Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally.
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Please read:
The comments expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not have an understanding of the specific scenarios of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for general educational purposes only

INFY stock chart overview

Should I buy Infosys Limited American Depositary Shar stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is INFY stock a buy?

Currently, Infosys Limited American Depositary Shar stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean INFY will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Infosys Limited American Depositary Shar stock?

When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the best moment to sell and get your benefits. Similarly to when we have to buy shares, choosing when is appropiate to sell is not a whimsical decision, and we must use our own trading strategy. When selling, as well as buying, our strategies are very easy to follow but are only applicable for selling shares in your porfolio, not for shorting INFY stock

A guiding principle is that you must never hold an open trade that generates greater losses than those expected upon purchase. The timing to sell your stock always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Infosys Limited American Depositary Shar stock?

In the current situation of Infosys Limited American Depositary Shar there is not any eligible sell setup, so Infosys Limited American Depositary Shar stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Infosys Limited American Depositary Shar stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month we couldn't find any rating for Infosys Limited American Depositary Shar

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Technical analysis

Since in late March, Infosys Limited American Depositary Shar has been printing an uptrend that by now marked an amazing 53.37%. During this uptrend, the price offered some entry points on the breakouts. Latest low was in mid-June, when price bounced at $8.84. Infosys Limited American Depositary Shar broke out above $9.59 (its last top) on June 30. That breakout was a good buy point

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Technical analysts use support and resistance levels as a way to find price points on a chart that tend to work as glass ceiling, containing the price of an asset to move in certain direction. A support level is a level where the price tends to find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it is likely to continue descending until meeting another support level. On the contrary, a resistance level is where the price tends to find a curb as it moves up. In the same way, the price is more likely to "rebound" at this level, and if it finally breaches this level, it will climb easily until it meets the next resistance

The current resistances are:

  • R1: $10.23 (0% above)
  • R2: $10.45 (2.15% above)
  • R3: $10.49 (2.54% above)
  • The current support levels are:

  • S1: $10.10 (-1.27% below)
  • S2: $10.07 (-1.56% below)
  • S3: $9.99 (-2.35% below)
  • Bollinger bands

    So-called Bollinger bands are a well-established studio created by John Bollinger. It is made up of three bands that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band yesterday, the price has been corrected downwards by 1.35%. The price is moving very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell point, as price can trade in these levels for many days and weeks

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to map the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by traders

    After crossing up the overbought zone yesterday, Relative Strength Indicator (RSI) dropped back below with a value of 67.49. This is a signal of weakness for the Infosys Limited American Depositary Shar shares and it must get us on alert of weakness in the price action

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    Earnings and financials

    Q1 investors call was hosted by INFY in mid-April after releasing the financial report. INFY posted 1st-quarter earnings of $0.14 per share on revenue of $3.2 billion. The Wall St estimate was $0.13 per share on revenue of $3.1 billion.

    Same quarter one year ago, reported EPS was $0.13, so recently posted EPS means an improvement of 7.69%. Looking at revenues, figures slightly changed compared to $3.1B year over year.

    INFY will host the quarterly earnings call on Wednesday next week. Analysts predict a per-share earnings of %s of $0.12, that is a 14.29% less than previous quarter. Earnings reporting day has a more than usual risk for stock investors as the results published can gap up or down the shares price with very low liquidity and not honouring your buy/stop-loss orders. You can obtain more information about the earnings call and the financial reports on the Investor Relations section of its website: http://www.infosys.com.

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