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INFOSYS | Best IT Share | Dont Sell A Single Stock | Know Here Why | Infosys Complete Stock Analysis


Infosys Limited Stock Complete Fundamental and Technical Analysis Infosys Complete Stock Analysis
Infosys Limited

Introduction


With nearly four decades of experience in managing the systems and workings of global enterprises, Infosys expertly steer their clients through their digital journey. They do it by enabling the enterprise with an AI-powered core that helps prioritize the execution of change. They also empower the business with agile digital at scale to deliver unprecedented levels of performance and customer delight. Their always-on learning agenda drives their continuous improvement through building and transferring digital skills, expertise, and ideas from theirs innovation ecosystem.


Infosys Limited (Infosys), formerly Infosys Technologies Limited, provides business consulting, technology, engineering and outsourcing services. Its end-to-end business solutions include consulting and systems integration comprising consulting, enterprise solutions, systems integration and advanced technologies; business information technology (IT) services consisting application development and maintenance, independent validation services, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management; products, business platforms and solutions, including Finacle, its banking product, which offers solutions to address core banking, mobile banking and e-banking needs of retail, corporate and universal banks globally, and areas, such as cloud computing, enterprise mobility and sustainability. On January 4, 2012, Infosys BPO Limited acquired Portland Group Pvt. Ltd. In October 2012, it acquired Lodestone Holding AG. The company also in the business segment of Financial Services, Energy & Utilities, Life Sciences and Healthcare, Consumer packaged goods and Logistics.


Part 1 – Fundamental Analysis


Quarterly Overview


Strengths and Weaknesses Based On Yearly Performance


Strengths


Weaknesses


Opportunities for Computer Software Sector


The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry. India is the leading sourcing destination across the world, accounting for approximately 55% market share of the US$ 200-250 billion global services sourcing business in 2019-20.


The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT industry are expected to increase by 1.9% to reach US$ 150 billion in FY21. In 2020, the IT industry recorded 138,000 new hires.


The IT & BPM industry’s revenue is estimated at ~US$ 194 billion in FY21, an increase of 2.3% YoY. The domestic revenue of the IT industry is estimated at US$ 45 billion and export revenue is estimated at US$ 150 billion in FY21.


Indian software product industry is expected to reach US$ 100 billion by 2025. Indian companies are focusing to invest internationally to expand global footprint and enhance their global delivery centers.


The data annotation market in India stood at ~ US$ 250 million in FY20, of which the US market contributed ~ 60% to the overall value. The market is expected to reach ~ US$ 7 billion by 2030 due to accelerated domestic demand for AI.


Indian IT's core competencies and strengths have attracted significant investment from major countries. The computer software and hardware sector in India attracted cumulative foreign direct investment (FDI) inflows worth US$ 62.47 billion between April 2000 and September 2020. The sector ranked 2nd in FDI inflows as per the data released by Department for Promotion of Industry and Internal Trade (DPIIT).


Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra are diversifying their offerings and showcasing leading ideas in block-chain and artificial intelligence to clients using innovation hubs and research and development centres to create differentiated offerings.


India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. The industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50 55 billion of the total revenue.


Key Positions Based On Yearly Results


Management

  • Chairman

Nandan M Nilekani, leads the position of Chairman for Infosys Limited.

  • Managing Director & CEO

Salil Parekh, serves as the Managing Director & CEO of Infosys Limited.

  • Whole Time Director & COO

U B Pravin Rao, heads as the Whole Time Director & COO of Infosys Limited.


Shareholding Pattern as on 31st December, 2020

Infosys Limited Shareholding Pattern Infosys Complete Stock Analysis
Infosys Limited - Shareholding Pattern

Returns on Share


52 Week Higher Level: 1,477.55 INR


52 Week Lower Level: 653.00 INR


Peers


TCS, Wipro, HCL Tech, Tech Mahindra, etc.


Part 2 – Technical Analysis



Infosys Stock Daily Chart Infosys Stock Complete Analysis Technical Analysis
Infosys Stock Daily Chart

The above image shows the Daily candlestick chart of INFOSYS along with 5, 13 and 26 Days Exponential Moving Averages (EMA), Moving Averages Convergence-Divergence (MACD), Relative Strength Index (RSI), Bollinger Bands (BB) and Volume.


After being in more than a long month in sideways trend the stock is expected to touch new heights in coming days as most of the indicators are in favor of the same.


Currently 1368 and 1330 levels are acting as resistance and support levels for the stock.


Indicators


1. 5, 13 and 26 Days Exponential Moving Average

Currently, Moving Averages are showing a favor towards bulls in the market as 5 DEMA has cut the 13 & 26 DEMA from below.


2. Moving Averages Convergence-Divergence (MACD) & MACD Histogram

MACD line has successfully cut the Signal line below as of 20th May, 2021 with rising MACD Histogram levels towards positive. A buy signal has been generated here.


3. Relative Strength Index (RSI)

At present RSI 14 level for the stock is around 52, still not showing a buy signal.


4. Bollinger Bands

The stock is moving between the middle Bollinger Band, being indecisive for traders.


5. Hammer Formation

As on 19th May, 2021 a Hammer formation is seen in daily chart of the security which is considered as a trend reversal pattern. There could be signs of getting bullish over following days in terms of the same.


From above studies, 5 out of 3 indicators are giving a buy signal for the stock while RSI and Bollinger Bands are acting as indecisive.


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Sources


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