Infosys shares slip 4% ahead of quarterly (Q4 FY24) results. Details here

Infosys shares slip 4% ahead of quarterly (Q4 FY24) results. Details here

Shares of Infosys Ltd fell sharply in Tuesday’s trade, extending their fall for the third straight session. The stock tanked 3.63 per cent to hit a day low value of Rs 1,415 over its previous close of Rs 1,468.30. At today’s low price, the scrip has declined 6.09 per cent in three trading days.

The Bengaluru-based IT major is scheduled to announce its quarterly (Q4 FY24) results on April 18. Domestic equity benchmarks will be closed on Wednesday due to Ram Navami.

Last week, Tata Consultancy Services (TCS) kicked-off the corporate earnings season on a positive note by reporting better-than-expected results.

Infosys may declare a flattish profit for the March quarter on a muted growth 3-4 per cent year-on-year (YoY) growth in sales.

Sharekhan said, “The IT firm is expected to report decline of 0.5 per cent in constant currency (CC) revenue due to weakness in discretionary spends and lower contribution from large deals.” The brokerage sees flattish EBIT margins for the quarter.

“We expect Infosys to hold out revenue growth guidance for FY25 in the 4-7 per cent CC range. We expect margin guidance to be similar to FY24 (20-22 per cent EBIT margin),” said Nirmal Bang Institutional Equities.

Nirmal Bang expects Infosys to report a revenue growth of 1.2 per cent QoQ in CC terms and sees cross currency tailwinds of 25bps.

On technical setup, support on the counter could be seen at Rs 1,400, followed by Rs 1,355 level. “The stock has witnessed a decent erosion in the last two months from Rs 1,730 level. With a bearish view at present, the next major support visible is near Rs 1,355. On the upside, it needs to decisively cross Rs 1,500 zone to establish conviction and anticipate for a further rise. With Q4 FY24 results outcome expected, there can be wild swings in the price movement in the coming session,” said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

“Immediate support will be at Rs 1,400 and resistance at Rs 1,445. A decisive close above the Rs 1,445 level may trigger a further upside till Rs 1,475. The expected trading range will be between Rs 1,375 and Rs 1,475 for a month,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

Separately, Infosys has announced successful completion of the technology landscape separation program of the Australian express logistics business, Team Global Express.

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