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Infosys Is Trading below Moving Averages in 2016—So Far

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Infosys’s shareholder returns and stock trends

India’s (INDA) leading IT services company, Infosys (INFY), generated investor returns of -3% in the trailing-12-month period and 0.12% in the trailing-one-month period. In comparison, it generated returns of 5% in 2015. The company’s share price rose 0.3% in the trailing-five-day period.

By comparison, Cognizant Technology Solutions Corporation (CTSH), Teradata Corporation (TDC), and Accenture (ACN)—Infosys’s peer companies in the IT services subsector—generated returns of 14%, -39.5%, and 19.6%, respectively, in 2015.

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Infosys’s moving averages

On January 11, 2016, Infosys closed the trading day at $16.25. Based on this figure, here’s how the company’s stock fared in terms of its moving averages:

  • 6.2% below its 100-day moving average of $17.33
  • 3.3% below its 50-day moving average of $16.81
  • 1.7% below its 20-day moving average of $16.53

Moving average convergence divergence and the relative strength index

A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. As of January 11, INFY’s 14-day MACD was -0.08. This negative figure indicates a downward trading trend.

As of the same day, the company’s 14-day RSI (relative strength index) was 38, which shows that the stock is slightly oversold. Generally, if the RSI is above 70, it indicates that a stock is overbought. An RSI figure of below 30 suggests that a stock has been oversold.

For more analysis, check out Market Realist’s Tech, Media, and Telecom page.

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