Infosys share price continued with its uptrend on Wednesday, reflecting the performance of the wider Indian IT sector. Infosys (NSE: INFY) was up by 1.1 percent at the time of writing, trading at a weekly high of Rs 1,824. The stock has been on a recovery path after last week’s steep decline, with its gains in the last five sessions topping 2 percent. A return above the psychological round figure mark of Rs 1,800 is a significant boost to the bullish sentiment and could set the stage for INFY to retest its July record highs.
However, the US economy still remains in focus, and Wednesday’s Consumer Price Index (CPI) release could inject fresh volatility into the market. Recession fears drove share prices downward in the first week of August, and investors will be looking at the CPI figures for hints on possible Fed interest rate decision making.
The 2-hour chart shows that the momentum on Infosys share price will likely stay on the uptrend. First, the price is currently above both the 20-SMA and 50 SMA. Secondly, the Relative Strength Index (RSI) is at 61, which indicates that the buyers have the upper hand. That said, the 20-SMA is still below the 50-SMA, meaning that the upside momentum could be dragged.
On the chart below, Infosys shares look likely to continue with the upside if the price action stays above the pivot mark at 1,812.50. The first resistance will likely be at 1,825.40, but if the bulls extend their control, they could break above that mark and potentially build the momentum to test 1,840.90. On the other hand, the sellers will have the upper hand if the price moves below 1,812.50. In that case, the first support could come at 1,800.40. However, extended control by the sellers could break below that mark, which would render the upside narrative invalid. Also, it could extend the downside to test 1,785.55.
This post was last modified on Aug 14, 2024, 12:04 BST 12:04