Infosys Ltd Technical Momentum Shifts Signal Bullish Outlook Amid Mixed Market Returns

Technical Momentum and Moving Averages

Infosys’s current price stands at ₹1,654.95, up 1.59% from the previous close of ₹1,629.00, with intraday highs touching ₹1,727.85. The stock remains comfortably above its 52-week low of ₹1,307.10 but still below its 52-week high of ₹1,922.65. The daily moving averages have turned bullish, indicating that short-term price trends are gaining strength. This is a critical development as moving averages often act as dynamic support and resistance levels, and a bullish crossover typically signals a positive price trajectory.

MACD and RSI Analysis

The Moving Average Convergence Divergence (MACD) indicator is showing bullish signals on both weekly and monthly charts. This suggests that the stock’s momentum is strengthening over multiple time frames, reinforcing the positive outlook. However, the Relative Strength Index (RSI) remains neutral on both weekly and monthly scales, indicating that the stock is neither overbought nor oversold. This neutral RSI reading implies that there is room for further upward movement without immediate risk of a reversal due to overextension.

Bollinger Bands and KST Indicators

Bollinger Bands on the weekly chart are bullish, reflecting increased volatility with upward price pressure. Conversely, the monthly Bollinger Bands show a mildly bearish stance, hinting at some caution over the longer term. The Know Sure Thing (KST) indicator aligns with this mixed view, being bullish on the weekly but bearish on the monthly timeframe. This divergence suggests that while short-term momentum is positive, investors should monitor for potential longer-term consolidation or correction phases.

Volume and Dow Theory Signals

On-Balance Volume (OBV) is mildly bullish on the weekly chart, indicating that volume trends support the recent price gains. However, the monthly OBV shows no clear trend, which may reflect a lack of conviction among longer-term investors. Dow Theory assessments are mildly bullish on both weekly and monthly charts, reinforcing the technical narrative of a cautiously optimistic outlook.

Comparative Performance Versus Sensex

When compared with the benchmark Sensex, Infosys’s returns present a mixed picture. Over the past week, Infosys declined by 1.69% while the Sensex gained 2.30%. However, over the one-month period, Infosys outperformed with a 0.87% gain against a 2.36% decline in the Sensex. Year-to-date, Infosys has returned 2.38%, contrasting with the Sensex’s negative 1.74%. Over longer horizons, the stock has lagged the Sensex, with a one-year return of -11.21% versus the Sensex’s 8.49%, and a three-year return of 3.49% compared to the Sensex’s 37.63%. The five-year and ten-year returns also show underperformance relative to the benchmark, though the stock has still delivered respectable absolute gains of 28.68% and 185.79% respectively.

Mojo Score Upgrade and Market Capitalisation

Infosys’s Mojo Score has improved to 77.0, earning a Buy grade from a previous Hold rating as of 22 December 2025. This upgrade reflects enhanced confidence in the stock’s technical and fundamental outlook. The company holds a Market Cap Grade of 1, indicating its status as a large-cap stock with significant market presence and liquidity. Such a grade often attracts institutional interest and provides stability amid market fluctuations.

Sector and Industry Context

Operating within the Computers - Software & Consulting sector, Infosys faces both opportunities and challenges amid rapid technological evolution and competitive pressures. The sector has generally been resilient, but individual stock performance can vary widely based on execution, client wins, and innovation. Infosys’s technical indicators suggest it is currently positioned to capitalise on sector tailwinds, supported by improving momentum and positive moving average trends.

Risk Considerations and Technical Caveats

Despite the bullish signals, some caution is warranted. The monthly Bollinger Bands and KST indicators show mild bearish tendencies, signalling potential resistance or consolidation ahead. The RSI’s neutral stance means the stock is not yet overbought, but also lacks strong momentum confirmation from this indicator. Investors should watch for confirmation of sustained volume increases and further MACD strength to validate the bullish case.

Outlook and Investor Takeaways

In summary, Infosys Ltd’s technical parameters have shifted favourably, with a clear move from mildly bullish to bullish momentum. The alignment of MACD and moving averages on shorter timeframes supports a positive near-term outlook, while neutral RSI readings suggest room for further gains without immediate overbought risk. Investors should remain mindful of the mixed signals from monthly indicators and monitor volume trends closely.

Given the stock’s recent Mojo Score upgrade to Buy and its strong market capitalisation, Infosys appears well-positioned to benefit from sector growth and technology spending trends. However, the stock’s relative underperformance versus the Sensex over the past year and longer periods highlights the importance of a balanced approach, combining technical signals with fundamental analysis.

For investors seeking exposure to the Computers - Software & Consulting sector, Infosys offers a compelling blend of technical strength and market leadership, albeit with some caution warranted on longer-term momentum indicators.

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