Recent Price Movement and Market Context
Infosys Ltd (NSE: INFY) closed at ₹1,535.90 on 5 Feb 2026, down from the previous close of ₹1,654.95, marking a steep intraday drop of 7.19%. The stock traded within a range of ₹1,510.10 to ₹1,584.00 during the session. This decline contrasts with the broader Sensex, which posted a modest gain of 1.79% over the past week, underscoring a divergence in performance.
Over the past year, Infosys has underperformed the Sensex significantly, with a 19.13% loss compared to the benchmark’s 6.66% gain. Even on a three-year horizon, the stock’s return of -3.96% lags the Sensex’s robust 37.76% appreciation. However, the longer-term 10-year return remains strong at 160.34%, reflecting the company’s enduring growth trajectory despite recent volatility.
Technical Trend Analysis: From Bullish to Mildly Bullish
The technical trend for Infosys has shifted from a clear bullish stance to a more cautious mildly bullish outlook. This transition is evident in the daily moving averages, which currently signal mild bullishness but lack the conviction seen in prior months. The stock’s 52-week high stands at ₹1,922.65, while the 52-week low is ₹1,307.10, indicating that the current price is closer to the lower end of its annual range.
On the weekly chart, the Moving Average Convergence Divergence (MACD) remains bullish, suggesting underlying momentum is still positive in the short term. However, the monthly MACD has turned bearish, signalling potential medium-term weakness. This divergence between weekly and monthly MACD readings highlights the mixed technical environment investors face.
Momentum Indicators: RSI and KST
The Relative Strength Index (RSI) on both weekly and monthly timeframes currently offers no clear signal, hovering in neutral zones without indicating overbought or oversold conditions. This neutrality suggests that the stock is neither excessively bought nor sold, leaving room for directional movement based on upcoming catalysts.
Conversely, the Know Sure Thing (KST) indicator presents a split view: bullish on the weekly scale but bearish monthly. This again emphasises the short-term momentum strength contrasted with longer-term caution.
Bollinger Bands and Volume Trends
Bollinger Bands on both weekly and monthly charts have turned bearish, reflecting increased volatility and downward pressure on prices. The stock’s recent close near the lower band on the daily chart indicates a potential oversold condition, but confirmation from other indicators is necessary before concluding a reversal.
On-balance volume (OBV) is mildly bullish on the weekly timeframe, suggesting that volume trends are somewhat supportive of price stability or modest accumulation. However, the monthly OBV shows no clear trend, indicating a lack of sustained volume-driven conviction over the longer term.
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Moving Averages and Dow Theory Signals
Daily moving averages for Infosys are mildly bullish, with the short-term averages hovering just above the longer-term ones. This suggests tentative upward momentum but also highlights the need for confirmation through sustained price action above key moving average levels.
Dow Theory assessments provide a mixed picture: no clear trend on the weekly timeframe but a mildly bullish stance on the monthly scale. This indicates that while short-term price action is uncertain, the broader trend may still favour cautious optimism.
Comparative Performance and Market Capitalisation
Infosys’s market capitalisation grade remains at 1, reflecting its status as a large-cap heavyweight within the Computers - Software & Consulting sector. The company’s Mojo Score has improved to 70.0, prompting an upgrade in its Mojo Grade from Hold to Buy as of 22 Dec 2025. This upgrade reflects improved technical and fundamental metrics, despite recent price weakness.
Investors should note that the stock’s recent underperformance relative to the Sensex—down 7.83% over the past week versus the Sensex’s 1.79% gain—may present a tactical buying opportunity if the mildly bullish technical signals hold.
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Investor Takeaways and Outlook
Infosys Ltd’s technical landscape is characterised by a blend of short-term bullish momentum and longer-term caution. The weekly MACD and KST indicators support a positive near-term outlook, while monthly bearish signals and Bollinger Band pressures caution against over-optimism.
Given the stock’s recent sharp decline and proximity to its 52-week low, investors should watch for confirmation of support levels around ₹1,510 to ₹1,530. A sustained rebound above daily moving averages and a shift in monthly MACD to bullish territory would strengthen the case for renewed upward momentum.
Conversely, failure to hold these levels could signal further downside risk, especially if volume trends weaken and broader market sentiment deteriorates. The neutral RSI readings suggest that the stock is not yet oversold, leaving room for additional price movement in either direction.
In the context of the broader Computers - Software & Consulting sector, Infosys’s technical upgrade to a Buy grade by MarketsMOJO reflects confidence in its underlying fundamentals and market position, despite recent volatility. Investors should balance these technical signals with fundamental analysis and sector trends before making allocation decisions.
Summary
To summarise, Infosys Ltd is navigating a complex technical environment marked by mixed signals across multiple indicators and timeframes. The shift from bullish to mildly bullish technical trends, combined with divergent MACD and KST readings, suggests a period of consolidation or cautious recovery. While the stock’s recent price weakness contrasts with broader market gains, the upgrade in Mojo Grade to Buy and a solid long-term return profile provide a foundation for potential upside if technical support holds.
Investors should monitor key technical levels and volume trends closely, as well as broader market conditions, to gauge the sustainability of any recovery in Infosys’s share price.
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