Infosys Ltd Technical Momentum Shifts Amid Mixed Indicator Signals

Jan 29 2026 08:00 AM IST
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Infosys Ltd (NSE: INFY) has experienced a nuanced shift in its technical momentum, with key indicators signalling a transition from a strongly bullish stance to a more cautiously optimistic outlook. Despite a modest decline of 1.01% on 29 Jan 2026, the stock’s underlying technical parameters reveal a complex interplay of bullish and bearish signals across multiple timeframes, warranting a detailed analysis for investors navigating the Computers - Software & Consulting sector.
Infosys Ltd Technical Momentum Shifts Amid Mixed Indicator Signals

Technical Trend Overview and Price Movement

Infosys currently trades at ₹1,666.40, down from the previous close of ₹1,683.40, with intraday highs and lows of ₹1,688.65 and ₹1,650.00 respectively. The stock remains comfortably above its 52-week low of ₹1,307.10 but still trails its 52-week high of ₹1,922.65, reflecting a degree of volatility within the past year. The technical trend has shifted from bullish to mildly bullish, indicating a tempering of upward momentum but not a reversal into bearish territory.

This subtle shift is underscored by the daily moving averages, which remain bullish, suggesting that short-term price action continues to favour upward movement. However, weekly and monthly indicators present a more mixed picture, signalling caution for medium- and long-term investors.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a dichotomy: the weekly MACD remains bullish, supporting the notion of sustained momentum in the near term, while the monthly MACD has turned bearish, signalling potential weakening in the longer-term trend. This divergence suggests that while short-term traders may find opportunities, longer-term holders should monitor for signs of a deeper correction or consolidation phase.

Complementing this, the Know Sure Thing (KST) oscillator aligns with the MACD’s mixed signals, showing bullish momentum on the weekly chart but bearish tendencies on the monthly timeframe. This reinforces the view that momentum is currently bifurcated, with short-term strength offset by longer-term caution.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) on both weekly and monthly charts currently registers no definitive signal, hovering in neutral zones that neither indicate overbought nor oversold conditions. This neutrality suggests that the stock is not presently stretched in either direction, providing a balanced environment for potential price moves.

Bollinger Bands on the weekly timeframe show a mildly bullish stance, with price action trending towards the upper band, indicating moderate upward pressure. Conversely, the monthly Bollinger Bands are sideways, reflecting a lack of clear directional bias over the longer term. This sideways movement on the monthly scale aligns with the broader theme of consolidation and indecision among investors.

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Volume and On-Balance Volume (OBV) Insights

On-Balance Volume (OBV) readings are mildly bullish on both weekly and monthly charts, indicating that volume trends are supporting price gains, albeit modestly. This suggests that accumulation is occurring, but not with the conviction typically seen in strong uptrends. Investors should watch for any acceleration in OBV as a potential confirmation of renewed buying interest.

Dow Theory and Moving Averages

Dow Theory assessments reveal no clear trend on the weekly scale, while the monthly perspective is mildly bullish. This mixed signal further emphasises the transitional phase Infosys is currently navigating. The daily moving averages remain bullish, reinforcing the short-term positive momentum, but the absence of a strong Dow Theory trend on the weekly chart advises prudence.

Comparative Performance Versus Sensex

When benchmarked against the Sensex, Infosys has demonstrated resilience in recent periods. Over the past week, Infosys returned 0.71% compared to the Sensex’s 0.53%, and over the past month, it posted a 0.66% gain while the Sensex declined by 3.17%. Year-to-date, Infosys has outperformed with a 3.09% return against the Sensex’s negative 3.37%. However, over the trailing one-year period, Infosys has underperformed, declining 8.90% while the Sensex gained 8.49%. Longer-term returns over three, five, and ten years show Infosys lagging the broader market, with 9.76%, 30.56%, and 194.59% gains respectively, compared to the Sensex’s 38.79%, 75.67%, and 236.52%.

This performance mix highlights the stock’s relative strength in short-term recovery phases but also underscores challenges in sustaining momentum over extended periods.

Mojo Score Upgrade and Market Implications

MarketsMOJO has upgraded Infosys’s Mojo Grade from Hold to Buy as of 22 Dec 2025, reflecting improved confidence in the stock’s prospects. The current Mojo Score stands at 70.0, signalling a favourable outlook supported by a Market Cap Grade of 1, which denotes strong market capitalisation metrics. This upgrade aligns with the technical indicators suggesting a cautiously optimistic stance, particularly in the short term.

Investor Takeaway and Outlook

Infosys Ltd’s technical landscape is characterised by a blend of bullish short-term signals and more tempered medium- to long-term indicators. The bullish daily moving averages and weekly MACD suggest that near-term price momentum remains intact, offering potential entry points for traders. However, the bearish monthly MACD and KST, alongside sideways monthly Bollinger Bands, counsel vigilance for possible consolidation or correction phases.

Investors should weigh these mixed signals against the company’s fundamental strengths and sector dynamics within Computers - Software & Consulting. The recent Mojo Grade upgrade to Buy provides an additional layer of confidence, but the stock’s underperformance relative to the Sensex over the past year and longer periods indicates that patience and selective timing will be key to capitalising on potential gains.

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Conclusion

Infosys Ltd is currently navigating a phase of technical recalibration, with short-term bullish momentum tempered by cautionary signals on longer timeframes. The stock’s recent price action and technical indicators suggest that while opportunities exist for gains, investors should remain alert to potential volatility and trend shifts. The upgrade in Mojo Grade to Buy and a solid Mojo Score of 70.0 provide a positive backdrop, but the mixed technical signals and relative performance versus the Sensex highlight the importance of a balanced, informed approach to investment decisions in this leading software and consulting company.

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