Mumbai: Shares of the country’s second largest IT company Infosys rose nearly three per cent in early trade today. With this, it became one of the largest growing stocks in the Nifty index. Infosys and other IT stocks rose on the back of a rise in tech stocks in the US. On Thursday, the tech heavy Nasdaq closed with a gain of 2.5 percent. Due to this, IT stocks in the country are showing a rally. The stock of Infosys has jumped almost 10 per cent from its recent swing low of Rs 1399.25. It was on a sharp decline and had fallen more than 25 per cent from its all-time high. With the rise in its price today, this stock is on 20-DMA and looks bullish in the short term. Not only this, recently its volume has been above the average, which is showing bind interest at lower levels in it.
The strength of this stock is improving in terms of technical parameters. Its 14-day daily RSI (52.57) is improving and is above its previous swing high. Meanwhile, its MACD histogram is rising and the price is indicating a strong bounce. Other momentum oscillators are also indicating a bullish trend in the stock.
The stock is trading in oversold region and is showing strong technical bounce. Interestingly, more short covering is expected in the coming days. With this, its price can go to the level of Rs 1600 and then it can reach the level of Rs 1630. Traders can keep this stock in their watchlist in the coming days.
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