Infosys shares jump 6%, rally 10% in 3 days as IT stocks shine. More upside ahead?
Infosys shares joined their IT peers in the bull run even as broader markets remained volatile. Nifty IT index gained over 4% while the broader Nifty 50 index was up only 0.5% on Tuesday afternoon.
The sharp surge in IT stocks comes after a strong correction earlier this year, following the launch of plug-ins for AI startup Anthropic’s Claude Cowork agent, which could automate tasks across legal, sales, marketing, and data analysis.
While analysts continue to debate the future of IT companies amid the AI boom, investors were quick to analyse the attractive valuations, leading to some pockets of buying. Nuvama, in its note, had highlighted that the IT sector is setting up for a powerful comeback, not a collapse, after the brutal AI-driven selloff.
“The IT services sector reported a weak-to-moderate Q4FY26 performance amid a challenging demand environment and delayed client decision-making across key verticals and geographies. However, despite macro uncertainties, profitability remained broadly stable, supported by rupee depreciation, improved employee utilisation, moderation in wage inflation, optimisation of subcontracting costs, and disciplined cost management initiatives,” said Axis Securities.
He added that within the IT services sector, demand visibility for discretionary spending is gradually improving, although clients remain selective in spending decisions. AI, machine learning, cloud transformation, cybersecurity, and digital engineering continue to witness healthy traction globally.
Infosys launches AI-powered journalism tool with Germany’s Handelsblatt Media Group
Infosys also announced it has launched an AI-powered Editorial Link Intelligence (ELI) along with Germany’s Handelsblatt Media Group. The engine would use Infosys Aster to “elevate digital journalism by delivering enhanced storytelling and driving deeper reader engagement”, it said.
“Editorial Link Intelligence, which we developed together with Infosys, creates direct value for our editorial teams through the targeted use of AI. By integrating the tool into our content management system, it supports journalists in identifying and linking relevant content. In this way, we are sustainably enhancing the user experience and increasing customer satisfaction,” said Christian Herp, Chief Product Officer at Handelsblatt Media Group.
Infosys share price
Infosys shares have gained more than 8% in one week and 7% in one month, but are down more than 22% so far in 2026. The shares of the IT company have fallen nearly 19% in one year, 3% in three years and more than 8% in five years.
What lies ahead for Infosys shares?
Infosys is showing early signs of recovery after a prolonged corrective phase that dragged the stock from its yearly highs, said Ajit Mishra, SVP at Religare Broking. He explained that the stock has formed a short-term base around the Rs 1,100–1,150 region and recently witnessed a strong breakout from the consolidation range on robust volumes, indicating renewed institutional participation.
Infosys bounce is being driven more by short covering and oversold positioning than by a decisive trend change, Harshal Dasani, Business Head at INVasset PMS, meanwhile said. “The Rs 1,275 to Rs 1,280 zone is the first resistance, while Rs 1,225 to Rs 1,230 remains the key support band,” it added.
Dasani further said that for Infosys, a strong reversal will need more than a technical rebound. Until the Indian IT sector shows a clear pivot towards AI-led revenue, productivity gains, and new deal momentum, rallies are likely to remain tactical rather than structural, he concluded.
Virat Jagad, Senior Technical Research Analyst at Bonanza, meanwhile, said that Infosys has shown signs of a technical recovery after witnessing a sharp correction from the Rs 1,700-1,750 zone. RSI has surged above 60, reflecting improving momentum and strengthening bullish sentiment. However, the stock continues to trade below its major long-term moving averages and the falling trendline resistance near Rs 1,550–1,600, which remains a key hurdle. “Sustaining above 1,250 can extend the recovery towards Rs 1,320 and Rs 1,400, while Rs 1,200 remains an important support level for maintaining the near-term positive bias,” he said.
Jatin Gedia, VP of Technical Research at Teji Mandi, highlighted that Infosys has started forming higher highs and higher lows, signalling an uptrend. More importantly, it has sustained above its short-term averages, indicating short-term strength. “On the upside, we expect the stock to continue its uptrend towards the Rs 1,385 – 1,400 zone, which coincides with the 200-day moving average. Support zone is placed at Rs 1,220 – 1,210,” he concluded.
Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
