Infosys share price rallied 2 per cent to a fresh record high of Rs 1,860 in intraday deals on Thursday. The stock surpassed its previous record high of Rs 1,848.25 apiece hit in October this year. The stock has been trading higher for the third straight day, gaining over 3 per cent. In comparison, BSE Sensex gained nearly 2 per cent during the same period. In the past one month, Infosys stock price has soared 23 per cent, as compared to a 2.2 per cent fall in the S&P BSE Sensex.
Analysts say that Infosys, being among the leaders in the IT sector, has gained from the continuous growth of the IT industry. The IT sector has been consistently performing well with continuous positive momentum in the sector. “The main reason behind the positive momentum and healthy revenue growth are strong order bookings, broad based revenue growth and stable margins,” Vijay Dhanotiya, Lead Technical Research, CapitalVia Global Research, told Financial Express Online.
In the past six months, Infosys stock has gained 23 per cent as against a 9.6 per cent gain in the benchmark index. Further, on a year-to-date (YTD) basis, Infosys share price has skyrocketed 47 per cent, as compared to a 20 per cent rise in the Sensex. Technical analysts say that the Nifty IT index is near its all time high; and out of the IT pack, Infosys remains the most relatively strong stock. “Even on the individual basis, any move above 1845 will result in a fresh breakout,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told Financial Express Online.
More upside in Infosys stock on cards
Vaishnav also added saying that if Infosys stock is able to move past 1845 convincingly, then stock may test 1930-1950 levels over the coming weeks, which implies a 5 per cent upside from current levels.
Analysts also said that the factors such as weakening of rupee, a bearish economic sentiment due to Omnicron fears, and another impending lockdown have led to buying in debt free, defensive sectors like IT, especially Infosys. “Technically, 1805 is a strong support and a closing above 1850 could lead to 1890 and 1985 in the coming weeks,” Pavitraa Shetty, Co-founder & Trainer, Tips2Trades, told Financial Express Online.
Infosys may continue to outperform Sensex
Infosys has posted good results in the last quarter as well. Analysts expect that the upcoming results will also show stability and strong growth. A lot of companies recently have started to build IT infrastructure and move towards digitisation which has benefited the IT companies to further strengthen their customer base and increase the revenue. “We can expect this pattern to continue with new variants of corona increasing the instability in the ecosystem. Hence, we can expect the company to outperform the benchmark in the future as well,” Dhanotiya added.
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