Infosys Shares Rally 2.47% with $0.39B Turnover Ranking 265th in India’s Equity Market as Strategic Dual Catalysts Signal Aggressive AI Expansion

Infosys (INFY) surged 2.47% on Aug. 20, with a $0.39B turnover ranking 265th in India’s equity market. The rally followed a strategic dual catalyst: a Q1 employee bonus plan offering 80% payouts for PL4-PL6 staff—well above industry benchmarks—and a $153M acquisition of 75% in Australia’s Versent Group. These moves signal aggressive AI expansion, with management linking bonuses to Q1FY26 results showing 7.5% revenue growth and ₹69.21B net profit. The stock’s 72% spike in trading volume underscores renewed investor confidence in talent retention and regional market penetration.

Technical indicators suggest short-term volatility. INFY’s RSI at 41.55 remains in oversold territory, while MACD (-0.417) and 200-day MA (19.61) highlight potential consolidation. Key support/resistance levels at $16.97 and $17.18 frame near-term price action. Options activity reflects strategic positioning: the INFY20250919C17 call option, with moderate IV (24.73%) and high gamma (0.320), is favored for breakout scenarios, while the INFY20250919P17 put offers downside protection with 48.86% leverage. High turnover in both instruments (29,874 and 3,538 contracts) signals active speculative positioning ahead of the 9/19 expiry.

Historical backtesting of INFY’s 3%+ intraday rallies shows mixed but favorable short-to-medium-term outcomes. The stock has achieved a 55.56% 3-day win rate, 58.62% 10-day win rate, and 56.36% 30-day win rate, with maximum 30-day returns reaching 2.01%. These metrics suggest momentum-driven strategies may capture modest gains, though consolidation near the 30-day MA (17.20) remains critical for trend confirmation. The Telstra AI partnership and Versent acquisition further align with India’s Digital India ETF (DGIN) and broader IT sector resilience, as peers like TCS also show strength.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to present delivered moderate returns. Total profit reached $2,385.14 as of the latest data, with steady growth over the past year despite periodic fluctuations. This underscores the mixed but generally positive performance of high-volume stocks in volatile market conditions.