Following the short squeeze trigger, Infosys ADR stock saw an intraday increase of more than 56% on Friday, reaching a 52-week high. The ADR (American Depository Receipt) shares of Infosys, the second-largest IT services business in India, finally finished down 5.68% higher at $20.27 apiece after soaring more than 56% during Friday's US stock market session. As the Infosys ADR stock price hit its intraday high of $30 per share on Friday, trade volumes surged to over 3,500,000, according to MarketWatch data. As of Friday's market session, the average level of trade volumes prior to the spike was approximately 300,000. During Friday's early trading session, the Infosys ADR price hit an intraday high. However, the shares are likely to have surged without the presence of a specific trigger, driven by technicals along with high trading volumes on Wall Street.
Experts in the stock market claim that there was no particular trigger that would have allowed the Infosys ADR share price to continue rising. However, it is anticipated that this increase will exacerbate Dalal Street bulls' feelings. When the Indian stock market opens for business on Monday, they anticipated a gap-up opening for Infosys shares on the BSE and NSE.
What caused the price of Infosys ADR to soar on Friday?
"Infosys ADR's rally on Friday comes amid a broader US-listed technology stocks rebound, gaining momentum from investors as they head towards the final weeks of the year-end," stated Avinash Gorakshkar, a fundamental equity analyst registered with SEBI. Therefore, purchases of Infosys ADR shares on the NYSE were not motivated by any fundamental development. The Infosys ADR price reached its 52-week high of $30 per share during the Friday session on the NYSE, but it ultimately closed at $20.27 per share, only 5.68% higher than its finish price on Thursday. Thus, Infosys ADR stock was driven largely by technical factors.
"A short squeeze drove the sudden spike, a technical market event that forced traders betting against the stock to buy shares, pushing prices sharply higher rapidly," Gorakshkar said, highlighting the technical factor that drove the price of Infosys ADR, which is listed on the NYSE, on Friday.
Gorakshkar stated, "The sentiment is definitely up, and bulls are expected to take advantage of this positive sentiment," on the implications for Infosys shares when trading at the NSE and BSE starts on Monday. It is very possible that Infosys shares would open higher on Dalal Street. However, it is anticipated that the Infosys share price increase on Dalal Street will be restrained by the Indian National Rupee (INR), which is strengthening against the US dollar following the Bank of Japan's decision to raise interest rates.
Outlook for the share price of Infosys ADR
Anuj Gupta, Director at Ya Wealth, stated, "INFY ADR increased sharply yesterday by 5.42% at $20.22 levels; however, during the session, it tested the new high of $30." He anticipated that the Infosys ADR price will exhibit such a surge for a few more sessions. We have observed a bullish breakthrough with higher volumes in the INFY ADR over the past three days. This bullish breakout is predicted to cause prices to rise further along with more volumes. Strong support can be found at $17 and $15, while opposition can be found at $25 and $30. It might test $25 to $30 levels once more in the near future, according to the technical structure.
Outlook for Infosys share prices on the BSE and NSE
When asked about the prospects for Infosys shares once trading on the BSE and NSE resumes, "Infosys shares are looking in a positive trend over the last couple of days," stated Anuj Gupta. It closed at ₹1638 after rising by 2.53% over the week and 5.04% since December 2025. It has increased for the third consecutive month. It created a shape with a taller top and a higher bottom. Short-term resistance can be found at the ₹1,680 and ₹1,750 levels, while support can be found at the ₹1,550 and ₹1,470 levels. trading in a bull market and anticipating more growth."
The short squeeze factor
A short squeeze occurs when the price of a stock that many investors have wagered against (by short selling) unexpectedly increases rather than declines. In order to minimize their losses, those investors are compelled to swiftly repurchase the stock, which raises the price of the stock even further.
Detailed instructions for brief squeezes
1] Short selling: When an investor borrows shares and sells them, they anticipate a decline in value so they may later repurchase them at a lower cost and keep the difference.
2] Price increases instead: Short sellers suffer losses if the stock price increases.
3] Forced purchasing: Brokers may make margin calls, compelling short sellers to promptly repurchase the shares.
4] Feedback loop: As a result of this buying frenzy, the price rises even further, "squeezing" out more short sellers.
5] excessive volatility: A short squeeze frequently results in a stock's quick, excessive volatility, which occasionally prompts exchanges to halt trading in order to stabilize the market.
Disclaimer: This narrative is solely intended for educational reasons. The opinions and suggestions expressed above are not those of Mint, but rather those of specific analysts or broking firms. Before making any financial decisions, we suggest investors to consult with qualified specialists.
0 Comments