INFY | Infosys — Monthly Chart Analysis | May 2026 📊 INFY | Infosys — Monthly Chart Analysis | May 2026
"Distribution Complete — Where Does Price Go From Here?"
🔍 Structure Overview
After a massive rally from the pandemic lows (~₹509), Infosys formed a textbook Distribution Zone between ₹1,460–₹2,006 over nearly 3 years (2021–2024). The recent monthly candle has delivered a decisive breakdown below this entire consolidation range.
Price is now at ₹1,093 — down ~39.5% from the swing high of ₹1,864 (60 bars, 1,824 days) and –7.50% on today's candle alone.
📐 Key Levels to Watch
ZonePriceSignificance🔴 Immediate Resistance₹1,185–1,195Breakdown retest zone🔴 Major Resistance₹1,378–1,417Previous structure + red line🟡 Current Price₹1,09315d4h low wick🟢 Support 1₹967–975Historic consolidation zone🟢 Support 2₹914Key horizontal🟢 Strong Support₹634Long-term demand zone🔵 Ultimate Support₹509All-time range low / HL Hammer zone
📉 Bearish Case (Primary Bias)
Monthly candle is printing a strong bearish engulfing / impulse close below ₹1,195 support
Volume surge (7.96B on the measured move) confirms institutional distribution, not retail panic
RSI on monthly approaching oversold but no divergence yet — more downside likely before reversal
The measured move from the distribution top projects toward ₹630–680 zone (gap fill + prior demand)
Price has broken below the 200 EMA equivalent on monthly — historically a major bearish signal for INFY
🐂 Bullish Case (Watch for)
A monthly close reclaim above ₹1,195 would invalidate breakdown (low probability currently)
₹967–975 zone = 5-year volume node — expect strong buyer absorption here
If monthly RSI hits 30–32 zone + price hits ₹914–967 → watch for reversal candle pattern
📰 Fundamental Context
Q4 FY26 results (Apr 23): Revenue ₹46,402 Cr (+13.4% YoY) — decent numbers. But market is pricing in:
FY27 growth guidance of only 4–7% CC — weak vs. expectations
Operating margin at 20.3% — compressed
GenAI deflation fears — agentic AI threatening traditional IT services demand
Client deal decision slowdowns amid macro uncertainty
The chart is confirming what the fundamentals are hinting: the easy IT growth era is pausing.
🎯 Trade Plan
Short Setup (Aggressive):
Entry: Retest of ₹1,185–1,195 on daily/weekly
SL: Above ₹1,280
Target 1: ₹967
Target 2: ₹634
Long Setup (Positional — Wait for it):
Entry: Only on monthly RSI divergence near ₹914–967
Confirmation: Bullish engulfing on monthly close
Target: Back to ₹1,195+ over 6–9 months
⚠️ Disclaimer: This is a technical analysis post for educational purposes only. Not financial advice. Always manage risk.
Chart created with ProfitPrism on TradingView.
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