Infosys Ltd Flash Crash: What Happens Next?

Infosys witnessed an unusual intraday move on October 23, plunging nearly 10% to ₹1,038.05 at 10:38 AM before recovering to ₹1,149.60 by the close of the same one-minute candle. What Caused the Sudden Fall? The stock briefly touched its lower price band before recovering almost immediately. Such an extreme move followed by a rapid reversal may indicate a temporary liquidity dislocation or an isolated trade rather than sustained selling pressure. An unusually large or erroneous sell order could be a possible explanation, although the exact trigger was not officially confirmed. Fundamental Update Infosys reported Q2 revenue of ₹49,244 crore and net profit of ₹7,823 crore. However, it lowered its FY27 revenue growth guidance to 1%–2%, reflecting demand and pricing pressures. Strong deal wins and AI-related revenue growth remain positive factors to monitor. Technical View On the daily chart, RSI near 64 indicates positive momentum, while MACD remains bullish and ADX near 29 suggests a strengthening trend. Infosys is trading above its short-term moving averages, but the 200-day SMA remains an important hurdle. Immediate resistance stands at ₹1,195. A sustained breakout above this level could open the way towards ₹1,220–₹1,230. On the downside, ₹1,140–₹1,145 is the immediate support zone, followed by ₹1,080–₹1,100. My View The technical structure is improving, but the reduced growth guidance remains a concern. A breakout above ₹1,195 with strong volume could strengthen bullish momentum, while rejection may lead to consolidation. The flash-crash recovery alone is not a buy signal. Disclosure: The analyst and his family do not have any position in the stock. Disclaimer: This article is for educational purposes only and is not investment advice.