Infosys shares up 1% ahead of Q4 results announcement later today
After falling about 17.5% from the top, the stock is now at an important support level but the underlying trend is bearish. "The stock has an important support at Rs 1,350 and resistance at Rs 1,500. Heavy short positioning ahead of results, with OI up 16% and stock down 2% this expiry," Emkay Global said.
Shares of IT major were trading higher by 1% at Rs 1,428 on BSE in Thursday's trade ahead of the announcement of its March quarter earnings which is expected in post-market hours.After falling about 17.5% from the top, the stock is now at an important support level but the underlying trend is bearish. "The stock has an important support at Rs 1,350 and resistance at Rs 1,500. Heavy short positioning ahead of results, with OI up 16% and stock down 2% this expiry," Emkay Global said.
In the March quarter, Infosys' consolidated revenue is seen dropping
0.4% sequentially, while growing 3.2% year-on-year (YoY) to Rs 38,650 crore, according to the average of estimates given by 10 brokerage firms.
"We expect Infosys to guide for 2-5% YoY revenue growth in cc terms with a 20-22% EBIT margin band for FY25. For context, the revised FY24F guidance of Infosys is 1.5-2% YoY revenue growth with a 20-22% EBIT margin," Nomura said.
Things to watch out for:
1) Guidance for FY25,
2) Timing and extent of salary hikes in FY25
3) Extent of boost from the margin improvement program in FY25.
4) Deal pipeline and translation of mega-deals into revenues.
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Source: Stocks-Markets-Economic Times
