Infosys share price hits record high for second day in a row, up 7% in 9 days; can rally over 8%

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Infosys’ share price rose 1.12 percent to a record high of Rs 1,489.40. Infosys touched April 12 this year, crossing its previous high of Rs 1,480. The stock has gained 7.2 percent in eight consecutive sessions. In comparison, the BSE Sensex has gained nearly one percent. Technical analysts are witnessing another 17.5 percent rally in the share price in the coming months.

With the majority of risky heavy sectors like real estate, metal, and small-cap, IT stocks have now started trending upwards with Infosys going to an all-time high today, an analyst said. “Infosys has attempted a strong Brexit, albeit on low volume. As long as it remains above 1480, it can test levels of 1510-1520. If it slips below 1480, it may see some recovery,” Milan Vaishnav, CMTA, MSTA, consulting technical analyst and founder, Gemstone Told Equity Research and Advisory Services Financial Express Online.

IT Criterion’s Board of Directors meeting is scheduled for July 14, 2021, to consider and approve the audited consolidated financial results of the Company for the quarter ended June 30, 2021. Brokerage firm Axis Securities in its Annual Analysis 2021 recommends Infosys to ‘buy with a target price of Rs 1,620, which means a rally of 8.6 percent from current levels. Infosys’ deals for FY21 stood at $14.1 billion, a year-on-year growth of 17 percent and the highest ever in the company’s history.

Earlier this week, the company had informed the stock exchanges that the board of directors of the company is scheduled to meet on July 14, 2021, to consider and approve the audited consolidated financial results of the company for the quarter ending June 30, 2021. Infosys looks bought more on the technical charts and analysts believe the rally could be extended to 1,502.

So far, 3.25 lakh shares have traded on BSE in terms of volume of trading, while a total of 51.34 lakh shares have exchanged hands on NSE so far.

The management has guided double-digit growth in FY22 in the backdrop of a strong deal win. “Additionally, higher offshoring, better use, and less apathy are likely to result in operating margin expansion in the near term. We recommend a buy rating on the stock and allocate 26 x P/E multiple for our FY23E income of Rs 61.9 per share to reach TP of Rs 1,620 per share.

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