Veteran IT company Infosys ( Infosys) Shares of the company have touched record highs by rallying for the second consecutive day (Thursday, 17 June 2021). On Thursday (June 17, 2021), its shares gained more than half a percent and it reached Rs 1492. Whereas on Wednesday, its shares had registered an increase of one percent. The stock has gained 7 per cent in the last nine days. Analysts believe that Infosys shares may rise further by 8 per cent.
Infosys likely to rally up to 8.5 percent
On Wednesday, the shares of Infosys crossed their previous level of Rs 1489.40 in intraday trading. This stock has been rising for nine consecutive sessions. This stock has registered an increase of 7.3 percent. Analysts say that this stock will increase by another 8.5 percent. Bonanza Portfolio Limited Research Head Vishal Wagh told Financial Express Online that at higher levels this stock can trade between 1560-1610, while at lower levels it should maintain a stop loss of 1420. Infosys shares have come out of the supply zone of 1450-1470. But now this area can emerge as its support.
Bullish on company growth
The meeting of the Board of Directors of Infosys will be held on July 14, 2021. In this, the consolidated financial results of the company for the quarter ending June 30, 2021 will be approved. Brokerage firm Axis Securities has given it a ‘BUY’ rating in its annual analysis for 2021. It has kept its target price at Rs 1620 per share. The firm says that the stock of Infosys can increase by 8.6 percent from the current level. The company has secured a deal worth more than one lakh crore in the financial year 2020-21. This is the biggest ever deal in the history of the company on an annual basis.
Huge increase in mutual fund investment through SIP, Asset base grows by 30 percent to Rs 4.67 lakh crore in five years
Is it wise to buy Infosys at the moment?
The company’s management has predicted double digit growth in the company due to large deals, more offshoring, better utilization. The operating margin of the company is also likely to increase. Infosys had announced a share buyback after the announcement of the last quarter’s results. Due to this the company is looking bullish towards growth. Ashish Biswas of CapitalVia Global Research told Finance Express Online that the stock is currently looking overbought on the chart. Therefore, by partially booking the position, one should wait for a fall from Rs 1390 to Rs 1410. After that you should buy more in it.
(Stock recommendations in the story are based on information provided by research analysts and brokerage firms. Financial Express Online does not take any responsibility for any investment advice. Please consult your advisor before investing.)
(Article: Surabi Jain)