Infosys shares jump 6% in 3 days, up 10% as IT stocks shine. More upside ahead?

Infosys shares have seen a sharp rally recently, rising nearly 6% on the NSE on Tuesday to Rs. It hit a near six-week high of 1,279. After a 10% rally in three days, analysts highlighted a better technical framework following the recent sharp correction.

Infosys shares joined their IT peers in a bullish run even as broader markets remained volatile. The Nifty IT index was up over 4% on Tuesday afternoon while the broader Nifty 50 index was up just 0.5%.

IT stocks rallied sharply after a strong correction earlier this year after AI startup Anthropic launched plug-ins for its cloud CoWork Agent, which can automate legal, sales, marketing and data analysis tasks.

While analysts continue to debate the future of IT companies amid the AI ​​boom, investors analyzed attractive valuations, leading to some pocket buying. Nuwama highlighted in its note that the IT sector is set for a powerful comeback, not a collapse, after a brutal AI-driven selloff.

“The IT services sector reported a weak-to-moderate Q4FY26 performance on a challenging demand environment and delayed client decision-making across key verticals and geographies. However, despite macro uncertainties, profitability remained broadly stable, supported by rupee depreciation, improved workforce utilization, cost improvement and disciplined cost management initiatives,” Axis Securities said.

He added that in the IT services sector, demand visibility for discretionary spending is gradually improving, although customers remain selective in spending decisions. AI, machine learning, cloud transformation, cyber security and digital engineering are witnessing healthy traction globally.

Infosys launches AI powered journalism tool with Germany’s Handelsblatt Media Group

Infosys also announced that it has launched AI-powered Editorial Link Intelligence (ELI) with Germany’s Handelsblatt Media Group. Engine will use Infosys Aster to “enhance digital journalism by driving enhanced storytelling and deeper reader engagement”.

“Editorial Link Intelligence, which we developed together with Infosys, creates direct value for our editorial teams through the targeted use of AI. By integrating the tool into our content management system, it helps journalists identify and link to relevant content. In this way, we are sustainably enhancing the user experience,” said Christian Satushti, Chief Media Officer, Christian Group. Handel’s chief media officer said.

Infosys share price

Infosys shares are up 8% in a week and more than 7% in a month, but are down more than 22% so far in 2026. Shares of the IT company have fallen by around 19% in one year, 3% in three years and more than 8% in five years.

What’s next for Infosys shares?

Ajit Mishra, SVP of Religare Broking, said Infosys is showing early signs of recovery after a prolonged corrective phase that pulled the stock from its annual highs. He explained that the share was worth Rs. It has formed a short-term base around 1,100-1,150 and has recently seen a strong breakout from the consolidation range on strong volume, indicating fresh institutional participation.

The Infosys bounce is more driven by short covering and oversold positioning than a decisive trend change, said Harshal Dasani, business head of INVasset PMS, meanwhile. “The zone of Rs 1,275 to Rs 1,280 is the first resistance, while Rs 1,225 to Rs 1,230 is the main support band,” he added.

Dasani further said that Infosys will need a stronger reversal than a technical rebound. Until the Indian IT sector shows a clear direction towards AI-led revenue, productivity gains and new deal momentum, the rallies are likely to remain strategic rather than structural, he concluded.

Virat Jagad, senior technical research analyst at Bonanza, said Infosys has invested Rs. A sharp correction from the 1,700-1,750 zone has shown signs of technical recovery. The RSI has risen above 60, indicating an improvement in momentum and strengthening bullish sentiment. However, the stock traded below its key long-term moving average and Rs. Continues to trade below the bearish trendline resistance near 1,550-1,600, which is a key barrier. “A sustain above 1,250 could extend the recovery towards Rs 1,320 and Rs 1,400, while Rs 1,200 is an important support level to maintain the near-term positive bias,” he said.

Teji Mandi’s VP of Technical Research Jatin Gedia highlighted that Infosys has started making higher highs and higher lows, indicating an uptrend. More importantly, it is holding above its short-term moving average, indicating short-term strength. “On the upside, we expect the stock to continue its uptrend towards the Rs 1,385 – 1,400 zone, which coincides with the 200-day moving average. The support zone is placed at Rs 1,220 – 1,210,” he concluded.

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