Infosys share price close to 52-week low. Opportunity for bottom fishing?
2 min read 28 Mar 2023, 11:41 AM ISTInfosys shares are in ₹1,350 to ₹1,450 range, say experts
PremiumInfosys shares have been in down trend for the last one year except some pull back action from last week of September 2022 to end of November 2022. Infosys share price today opened with am upside gap and went on to hit intraday low of Rs1,382.90 apiece levels, which is near 2 per cent away from its 52-week low of ₹1,355 apiece on NSE.
According to stock market experts, after eruption of series of bank crisis in US followed by Credit Suisse collapse in Europe, Indian IT stocks, especially large-cap leaders like Infosys are under sell off heat. They said that due to bank crisis in US, IT companies based in India are expected to lose goodl amount of business in upcoming quarters. So, current 52-week low looks weak and the stock may further go down towards ₹1,240 levels in short to medium term. They said that Nifty IT index is also looking sideways to weak as the index is below 28,000 and it may further go down towards 26,200, its previous lower levels.
Speaking on the reason for weakness in Infosys shares, Ravi Singhal, CEO at GCL Broking said, "IT stocks have been under stress for more than one year after the Russia-Ukraine war. So, IT shares are already at discounted levels but more downside can't be denied as bank crisis in US after SVB collapse is going to hit 40 to 50 per cent BFSI business of the Indian IT companies in US. So, major IT companies in India may report better numbers in Q4FY23 but in following quarters in FY24, they might not be able to maintain their higher bottleneck and hence market has started discounted on that dip in their US revenue."
Expecting weakness in IT stocks to further continue, Sumeet Bagadia, Executive Director at Choice Broking said, "Nifty IT index is trading in 29,000 to 26,200 range and it's looking sideways to negative on charts. So, We might see sell on rise trend in most of the IT stocks."
Expecting major sell off in large-cap IT stocks, Ravi Singhal of GCL Broking said that mid-cap and small-cap IT stocks are already at their lowest ebb and hence downside move in such IT stocks will be limited and hence Infosys share price may breach its current 52-week low and go further down up to ₹1,240 apiece levels, its previous lower levels."
He advised Infosys shareholders to maintain stop loss below current 52-week low and advised exit on rise in Infosys as it may go up to ₹1,450 apiece levels in near term if its current 52-week low is saved.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
