Infosys Ltd Technical Momentum Shifts Amid Sideways Trend

Technical Trend Overview

Recent analysis reveals that Infosys Ltd’s technical trend has softened from mildly bullish to sideways, signalling a period of consolidation after previous upward momentum. The stock closed at ₹1,497.05 on 10 Feb 2026, down 0.65% from the prior close of ₹1,506.90. Intraday, the price fluctuated between ₹1,493.00 and ₹1,527.80, indicating some volatility but no decisive directional breakout.

The 52-week price range remains broad, with a high of ₹1,908.50 and a low of ₹1,307.10, highlighting the stock’s capacity for significant swings. However, the recent sideways movement suggests investors are weighing near-term risks and opportunities carefully.

MACD Signals: Weekly and Monthly Perspectives

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On the weekly chart, the MACD is mildly bearish, reflecting a waning bullish momentum over the short term. This suggests that the recent upward price advances are losing steam, and the risk of a correction or sideways drift is increasing.

On the monthly timeframe, the MACD is outright bearish, signalling a longer-term downtrend pressure. This monthly bearishness aligns with the stock’s underperformance relative to the broader market over the past year, where Infosys has declined 21.3% compared to the Sensex’s 7.97% gain.

RSI and Bollinger Bands: Neutral to Bearish Signals

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering around neutral levels. This indicates that the stock is neither overbought nor oversold, reinforcing the sideways trend narrative.

Conversely, Bollinger Bands on weekly and monthly charts are bearish, suggesting increased volatility with a downward bias. The price is closer to the lower band, which often precedes a period of price compression or a potential rebound, but the prevailing sentiment remains cautious.

Moving Averages and KST Indicator

Daily moving averages continue to show a mildly bullish stance, with short-term averages slightly above longer-term ones. This indicates that despite recent weakness, the stock retains some underlying support from buyers in the near term.

The Know Sure Thing (KST) indicator offers a split view: weekly KST is bullish, hinting at potential short-term strength, while monthly KST remains bearish, consistent with the longer-term downtrend pressure.

Volume and Trend Confirmation Indicators

On-Balance Volume (OBV) analysis shows no clear trend on the weekly chart but a mildly bullish signal on the monthly chart. This suggests that while short-term volume flows are indecisive, longer-term accumulation may be occurring, providing some support to the stock price.

Dow Theory assessments indicate no definitive trend on the weekly scale but a mildly bullish outlook monthly, adding to the mixed signals that investors must navigate.

Comparative Performance: Infosys vs Sensex

Infosys Ltd’s recent returns have lagged the benchmark Sensex across multiple timeframes. Over the past week, the stock declined 8.1% while the Sensex gained 2.94%. The one-month and year-to-date returns for Infosys are negative at -7.29% and -7.39%, respectively, compared to modest Sensex gains of 0.59% and a slight decline of -1.36% year-to-date.

Over the longer term, Infosys has underperformed significantly. The one-year return is -21.32% versus Sensex’s 7.97% gain, and the three-year return is -7.46% compared to a robust 38.25% for the Sensex. Even over five and ten years, Infosys’s returns of 14.72% and 169.91% lag behind the Sensex’s 63.78% and 249.97%, respectively.

This relative underperformance highlights the challenges Infosys faces amid evolving industry dynamics and competitive pressures.

Mojo Score and Rating Update

MarketsMOJO’s latest assessment downgraded Infosys Ltd’s Mojo Grade from Buy to Hold on 9 Feb 2026, reflecting the tempered technical outlook and relative underperformance. The current Mojo Score stands at 60.0, signalling a cautious stance for investors. The Market Cap Grade remains at 1, indicating a large-cap status but with limited momentum.

This downgrade aligns with the mixed technical signals and the sideways price action observed in recent sessions.

Investor Takeaway and Outlook

Infosys Ltd’s technical indicators suggest a stock in transition, with short-term bullish elements offset by longer-term bearish pressures. The mildly bullish daily moving averages and weekly KST offer some hope for a near-term rebound, but the bearish monthly MACD and Bollinger Bands caution against aggressive positioning.

Investors should monitor key support levels near ₹1,490 and resistance around ₹1,530 to gauge the next directional move. Given the sideways trend and relative underperformance versus the Sensex, a wait-and-watch approach may be prudent until clearer signals emerge.

Fundamental factors, including earnings outlook and sector dynamics, should also be considered alongside technical analysis to form a comprehensive investment view.

Summary

In summary, Infosys Ltd is navigating a complex technical landscape marked by a shift from mild bullishness to sideways momentum. Mixed signals from MACD, RSI, Bollinger Bands, and moving averages underscore the need for caution. The downgrade to a Hold rating by MarketsMOJO reflects these uncertainties, while the stock’s underperformance relative to the Sensex adds to investor concerns. Close monitoring of technical levels and broader market conditions will be essential for informed decision-making in the coming weeks.

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