No signal was created. Models could not agree on a directional bias.
INFY is extremely oversold on the daily timeframe (RSI ~22.9) while trading only ~5–6% above a clear support zone near the 52-week low, creating an attractive mean-reversion setup where downside is more definable than upside. Volume profile shows current price sitting on/near a high-volume node around the mid-15 area (HVN) , which often acts as a “base” that can fuel a swing back toward the next major resistance (~ $17) if selling pressure fades. On the catalyst side, management’s recent AI-focused messaging (Investor AI Day) and the raised FY26 revenue guidance reported in recent coverage improve sentiment skew, and the broader market regime is calm/trend-friendly (VIX complacent/contango) , which historically supports grind-up reversals from washed-out conditions.
INFY presents a compelling mean-reversion opportunity at deeply oversold levels with RSI at 22.91 (extreme oversold) , trading just 5.6% above 52-week lows and near a high-volume support node at ₹1, 359. The technical setup is reinforced by strong fundamental quality: 32.7% ROE, healthy 16.2% profit margins, and low beta (0.26) providing defensive characteristics in any volatility. Analyst sentiment is overwhelmingly bullish with Elara Capital targeting ₹1, 680 (+21% upside) and Motilal Oswal at ₹1, 850 (+35%) , driven by strategic AI initiatives and recent M&A (The Missing Link acquisition st
INFY shows compelling technical reversal potential with RSI(22.91) deeply oversold near strong historical support at ₹1281.50 while trading 11.4% below resistance. The recent AI partnership expansion with Siemens and raised FY26 revenue guidance (+3.5%) creates fundamental momentum. Market regime favors calm trending environments (76% confidence) supporting mean reversion setups.
INFY has suffered a technical capitulation, breaking below the 200-day SMA and confirming a 'Death Cross' (50 SMA crossing below 200 SMA) , which historically signals prolonged downside. Fundamentally, the market is pricing in 'AI deflation' risk—the fear that Generative AI will cannibalize legacy IT service billings—causing INFY to de-rate despite guidance hikes. The recent 'Bearish Engulfing' candle on high volume indicates institutional distribution is accelerating.
INFY suffered a brutal -9.78% earnings miss in January 2026 (₹16.14 vs ₹17.89 estimate), signaling deteriorating execution and guidance credibility. The stock has plunged -26% from 52-week highs and shows technical breakdown with SMA20 < SMA50 (bearish crossover), falling RSI momentum, and price trading 3.2% below both key moving averages. Volume is anemic at only 69% of average, indicating capitulation and lack of buying conviction. The value area low at ₹1337.31 is breached, with next major support at ₹1281.5 only 5.6% lower—minimal downside cushion before further collapse. IT services face
INFY shows sustained technical weakness below key SMAs with bearish momentum, evidenced by 3% post-AI event drop despite $400B roadmap as markets price in AI's deflationary impact on legacy revenue. Recent 9.78% EPS miss and below-average volume reflect weak institutional conviction amid semiconductor export control risks.
Bull and bear cases balanced — no clear edge
INFY shows compelling technical reversal potential with RSI(22.91) deeply oversold near strong historical support at ₹1281.50 while trading 11.4% below resistance. The recent AI partnership expansion with Siemens and raised FY26 revenue guidance (+3.5%) creates fundamental momentum. Market regime favors calm trending environments (76% confidence) supporting mean reversion setups.
INFY shows sustained technical weakness below key SMAs with bearish momentum, evidenced by 3% post-AI event drop despite $400B roadmap as markets price in AI's deflationary impact on legacy revenue. Recent 9.78% EPS miss and below-average volume reflect weak institutional conviction amid semiconductor export control risks.
Thesis Competition CONTESTED: BULL case (68%) vs BEAR case (68%) - confidence delta (0%) below threshold. Trade skipped due to insufficient conviction.
LONG mean-reversion swing from deeply oversold conditions near support, targeting a reversion back to the next resistance while keeping risk defined below the 52-week-low area.
INFY is extremely oversold on the daily timeframe (RSI ~22.9) while trading only ~5–6% above a clear support zone near the 52-week low, creating an attractive mean-reversion setup where downside is more definable than upside. Volume profile shows current price sitting on/near a high-volume node around the mid-15 area (HVN) , which often acts as a “base” that can fuel a swing back toward the next major resistance (~ $17) if selling pressure fades. On the catalyst side, management’s recent AI-focused messaging (Investor AI Day) and the raised FY26 revenue guidance reported in recent coverage improve sentiment skew, and the broader market regime is calm/trend-friendly (VIX complacent/contango) , which historically supports grind-up reversals from washed-out conditions.
Price is below the key moving averages (SMA20 < SMA50 and price ~3% under them) , with RSI still falling—suggesting downside momentum hasn’t fully exhausted despite being oversold. Volume is running ~0.69× average, implying weak dip-buying demand, and the volume profile shows the broader POC far overhead (~1672) , consistent with prior high-volume “fair value” much higher and current trade being in a lower acceptance zone; rallies into ~1380–1400 are likely to be sold. With support only ~5–6% beneath current price (~1281/1296 lower band) , a breakdown risks a quick acceleration lower as stops trigger under the 52-week low area.
Thesis Competition: BULL case won (66% vs 62%).
Bull and bear cases balanced — no clear edge
INFY presents a compelling mean-reversion opportunity at deeply oversold levels with RSI at 22.91 (extreme oversold) , trading just 5.6% above 52-week lows and near a high-volume support node at ₹1, 359. The technical setup is reinforced by strong fundamental quality: 32.7% ROE, healthy 16.2% profit margins, and low beta (0.26) providing defensive characteristics in any volatility. Analyst sentiment is overwhelmingly bullish with Elara Capital targeting ₹1, 680 (+21% upside) and Motilal Oswal at ₹1, 850 (+35%) , driven by strategic AI initiatives and recent M&A (The Missing Link acquisition strengthens cybersecurity capabilities) . The calm market regime (76% confidence) with VIX complacent favors trend-following strategies, and INFY's NSE listing shows INLINE regional performance, eliminating geographic headwinds. With no earnings catalyst until April 2026, the stock has a clean 6-8 week runway to recover toward resistance at ₹1, 528, supported by FY25 revenue growth of 4.2% and robust ₹19.28B revenue base.
INFY suffered a brutal -9.78% earnings miss in January 2026 (₹16.14 vs ₹17.89 estimate), signaling deteriorating execution and guidance credibility. The stock has plunged -26% from 52-week highs and shows technical breakdown with SMA20 < SMA50 (bearish crossover), falling RSI momentum, and price trading 3.2% below both key moving averages. Volume is anemic at only 69% of average, indicating capitulation and lack of buying conviction. The value area low at ₹1337.31 is breached, with next major support at ₹1281.5 only 5.6% lower—minimal downside cushion before further collapse. IT services face structural headwinds from AI disruption threatening traditional outsourcing models, while the 3-month return of -7.72% confirms sustained selling pressure.
Thesis Competition CONTESTED: BULL case (72%) vs BEAR case (72%) - confidence delta (0%) below threshold. Trade skipped due to insufficient conviction.
Short INFY on technical breakdown and AI disruption fears.
INFY has suffered a technical capitulation, breaking below the 200-day SMA and confirming a 'Death Cross' (50 SMA crossing below 200 SMA) , which historically signals prolonged downside. Fundamentally, the market is pricing in 'AI deflation' risk—the fear that Generative AI will cannibalize legacy IT service billings—causing INFY to de-rate despite guidance hikes. The recent 'Bearish Engulfing' candle on high volume indicates institutional distribution is accelerating.
INFY is presenting a classic mean-reversion opportunity, currently trading at major structural support ($14.19 52-week low) with RSI deeply oversold (approx. 33). The stock is significantly extended below its 20-day SMA, setting up a 'snap-back' rally as sellers exhaust. With NVIDIA earnings approaching, an AI-sector tailwind could catalyze a rotation back into undervalued IT services plays, targeting a reversion to the mean near $16.
Thesis Competition: BEAR case won (72% vs 65%).