Infosys share price hits new record high; stock may rally 17% more in coming months
Infosys Limited is an Indian multinational information technology company that provides business consulting, information technology and outsourcing services. The company is headquartered in Bangalore.In India, shares of Infosys are listed on the BSE where it is a part of the BSE SENSEX and the NSE where it is a NIFTY 50 Constituent. Its shares are listed by way of American depositary receipts (ADRs) at the New York Stock Exchange.
Initial public offering (IPO) was floated in February 1993 with an offer price of ₹95 (equivalent to ₹550 or US$7.80 in 2019) per share against a book value of ₹20 (equivalent to ₹120 or US$1.60 in 2019) per share.
The share price surged as much as 1.12 per cent to hit a record high of Rs 1,489.40 apiece intraday, in an otherwise weak market. Infosys has crossed its previous high of Rs 1,480, touched on April 12 this year.The stock has gained for the eight consecutive sessions, rising 7.2 per cent. In comparison, BSE Sensex has gained nearly one per cent. Technical analysts see another 17.5 per cent rally in the stock price in the coming months.
“Infosys has attempted a strong breakout, though on lower volumes. So long as it stays above 1480, it can test 1510-1520 levels. If it slips below 1480, it may see some retracement,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services.
With the majority of the risk heavy sectors like real estate, metals and small-caps at their peak, IT stocks have now started their upward trend with Infosys moving to an all-time high today, said an analyst.
Earlier this week, the company informed the stock exchanges that the meeting of the Board of directors of the company is scheduled on July 14, 2021, to consider and approve the audited consolidated financial results of the company for the quarter ending June 30, 2021.
Technical charts and analysts feel that Infosys looks overbought and that the rally might get extended to 1502.
AR Ramachandran, Co-founder & Trainer, Tips2Trades, said that investors should be advised to book partial profits at current levels & wait for a dip near 1375-1400 to re-enter for targets of 1580-1750 in the coming months.