Pullback Rally In Infosys: SEBI RA Deepak Pal Says Stock Could Soon Hit ₹1,670

Technical indicators are hinting towards a bullish breakout for Infosys, with the stock holding firmly above its key moving averages. The stock has risen over 2% on Wednesday, becoming the top Nifty gainer in early trade.

Infosys has been consolidating within a defined range over the past month, a pattern that often precedes a directional breakout. 

According to the daily chart, Infosys has found strong support around its 14-day and 55-day EMA zones, as observed by SEBI-registered analyst Deepak Pal.

After hitting lows of ₹1,575.00 on June 23 and ₹1,577.40 on June 24, Infosys stock has not revisited those levels, indicating firm buying interest. A similar low of ₹1,570.40 was recorded on June 13, reinforcing the ₹1,570 - ₹1,575 level as a key support area, Pal said.

Although the stock is not yet in a clear pullback rally, it continues to trade above its 55-day EMA, with the 14-day EMA also providing consistent support around ₹1,590.00. Technical indicators, including moving average convergence/divergence (MACD), relative strength index (RSI), and Parabolic SAR, are showing a bullish bias, the analyst stated.

The ₹1,590 level, which also aligns with the 200-day EMA, remains a critical support zone, Pal said. Any dip toward ₹1,599 - ₹1600 can be considered a good entry point with upside targets of ₹1,660 - ₹1,670. Pal recommended a stoploss at ₹1,575.

The software services bigwig is supported by consistent revenue growth, strong margins, and robust free cash flow generation. Its acquisition of Australian firm, The Missing Link, further strengthens its cybersecurity capabilities and presence in the market down under.

Year-to-date (YTD), the stock has shed 14.2%. Tech stocks have underperformed in the first half (H1) of 2025, weighed down by concerns over global demand, weak spending, and institutional investors selling. The Nifty IT index emerged as the worst-performing sector in H1 2025. 

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