Not a good buy right now for an impatient entry: price just broke below the near-term support (S1 ~16.851) and momentum is still deteriorating.
Near-term risk remains for a flush toward S2 (~16.325) before any durable rebound.
Medium-term backdrop is improving (tariff/trade headlines; hedge funds accumulating), but the tape + options positioning skew defensive/bearish right now.
Trend/Momentum: Bearish short-term. MACD histogram is negative (-0.155) and expanding lower, signaling downside momentum is strengthening.
RSI: RSI_6 at ~28.16 is effectively oversold, which can set up a bounce, but oversold can persist while price continues to slide.
Moving averages: Converging MAs = lack of clear trend support; price action is currently doing the “decision-making,” and it’s leaning down.
Levels:
Pivot: 17.703 (now overhead; rallies likely face supply below/near this level)
Resistance: 18.555 then 19.081
Support: 16.851 (recently violated) then 16.325 (next downside magnet)
Pattern-based forward look (provided): ~90% chance of +1.66% next day, -1.34% next week, +12.33% next month → suggests choppy near-term with better 1-month upside, but the current break of support makes the entry timing unattractive today.
Options Data
Bearish
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
Positioning/Sentiment: Put-heavy (OI P/C 2.96) and put volume also higher than calls (volume P/C 1.16) → market is skewed to hedging / bearish protection.
Volatility: IV percentile 86.85 is elevated (options priced rich), consistent with uncertainty and downside concern.
Activity: Today’s option volume is ~46.96% of 30-day average (not a blow-off panic day), while open interest is elevated (today vs OI avg ~69.11%) → bearish skew looks more “positioned” than a one-day fear spike.
Takeaway: Options market is not confirming a clean bottom yet; sentiment leans defensive.
Technical Summary
Sell
9
Buy
4
Positive Catalysts
Macro/trade tailwinds: U.S.-India trade agreement and tariff reductions (U.S. and India) supportive for Indian IT services demand and sentiment.
India policy tailwind: 20-year tax exemption for data centers could accelerate cloud/data ecosystem investment and downstream services opportunities.
Corporate visibility/branding: Expanded partnership with Madison Square Garden; ongoing AI/innovation showcases (e.g., Australian Open tech) support brand and deal narrative.
Flows: Hedge funds are reportedly buying aggressively (+2577.23% QoQ buying amount), a meaningful vote of confidence in the medium term.
Neutral/Negative Catalysts
increases odds of continued near-term selling.
implies the market remains positioned defensively.
Net income: 747.1M, down -7.31% YoY → earnings deterioration.
EPS: 0.18, down -5.26% YoY → per-share profitability weakened.
Gross margin: 28.28, down -7.25% YoY → margin compression is a key negative trend to monitor.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent change (2026-01-09): TD Cowen raised price target to $17 (from $16) but maintained a Hold rating.
What this implies: Wall Street is mildly more constructive on the 2026 IT spend setup, but conviction is not high enough to move to Buy.
Pros (Street view): Gradual improvement in enterprise IT spending; sector valuations seen as discounted.
Cons (Street view): Hold rating suggests limited near-term upside vs risk; current profitability/margin trend does not scream “must-own” at this moment.
Influential/political trading: No recent congress trading data available; insiders are neutral (no notable recent insider signal).
Wall Street analysts forecast INFY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INFY is 18.95 USD with a low forecast of 17 USD and a high forecast of 22.8 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
Wall Street analysts forecast INFY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INFY is 18.95 USD with a low forecast of 17 USD and a high forecast of 22.8 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
5 Hold
0 Sell
Hold
Current: 16.800
Low
17
Averages
18.95
High
22.8
Current: 16.800
Low
17
Averages
18.95
High
22.8
TD Cowen
Hold
upgrade
$16 -> $17
AI Analysis
2026-01-09
Reason
TD Cowen
Price Target
$16 -> $17
AI Analysis
2026-01-09
upgrade
Hold
Reason
TD Cowen raised the firm's price target on Infosys to $17 from $16 and keeps a Hold rating on the shares. The firm is "constructive" on services sector setup for 2026, anticipating gradual improvement in enterprise IT spend at a time when average valuations remain discounted.
BMO Capital
Market Perform
downgrade
$20 -> $18
2025-10-17
Reason
BMO Capital
Price Target
$20 -> $18
2025-10-17
downgrade
Market Perform
Reason
BMO Capital lowered the firm's price target on Infosys to $18 from $20 and keeps a Market Perform rating on the shares. The company reported a "reasonable" Q2 with a slight raise to the bottom end of the FY26 guide, though the firm also thought the commentary on the demand environment remains subdued, including no improvement in smaller deals from the June quarter, the analyst tells investors in a research note. Infosys called out positive developments with respect to AI-related demand, though BMO remains skeptical on AI being a long-term tailwind for services, the firm added.
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