Infosys Limited (INFY) Trading Guide: Pip Value & Strategy (2026)

INFY isn't your typical US stock. It's an American Depositary Receipt (ADR), where each share you buy on the NYSE represents a fractional ownership stake in the Bangalore-based company. This structure is the key to its behavior. Price gaps can form between the Indian NSE-listed shares and the NYSE ADR, creating arbitrage pressure that moves INFY independently of the broader US market. You're not just trading a company; you're trading the bridge between two financial worlds.

Here are the core specs you need to know immediately:

The 1:1 relationship between contracts and shares makes position sizing clean. If INFY is at $20 and you want $2,000 exposure, you buy 100 contracts. Simple. This clarity is critical when its quarterly earnings can produce 5-12% intraday moves. At $18 a share, a 10% move is 180 pips — that's a $180 move per contract. You need to know your numbers before the news hits.

Most traders stick to indices or mega-cap tech. INFY offers a different profile. Its volatility is concentrated and predictable, often tied to specific events. The dual-market sensitivity means you get two catalysts for the price of one: Indian corporate news and US market sentiment.

Its correlations are also telling:

• IT Sector (XLK): Strong positive correlation. A bad day for US tech often drags INFY down.
• USD/INR: Meaningful inverse relationship. A strengthening Indian Rupee (weaker USD/INR) can compress the ADR's premium, putting downward pressure on INFY.
• Indian Peers (TCS, WIPRO): News from competitors frequently spills over.

I learned this the hard way. In July 2023, I was long INFY ahead of earnings. The report beat estimates, but guidance cited "macroeconomic headwinds." The stock gapped down 8% in pre-market — a 140-pip move against me before the NYSE even opened. I didn't respect the Indian market's reaction to the guidance wording. That trade cost me $1,400 on a 10-contract position. The lesson? With INFY, you must read the news from both Mumbai and New York.

Timing is everything with INFY. Assuming the Regular session is all that matters is a rookie mistake. Each window has a specific purpose.

The practical takeaway: Build your thesis in pre-market, execute at the Regular session open, and use after-hours to plan for tomorrow. Don't chase price in the illiquid sessions — the spreads will eat you alive, and a single large order can cause a 20-30 pip spike with no warning.

INFY's modest share price is deceptive. A $20 stock moving 8% is a 160-pip swing — that's larger than many forex trades. You must size accordingly.

Start with your account risk. On a $10,000 account, risking 1% means $100 per trade. With INFY's pip value at $1.00, the math is straightforward: Position Size (contracts) = Account Risk ($) / (Stop Loss in Pips * $1.00)

Example: You want a 50-pip stop loss.

• $100 Risk / (50 pips * $1.00) = 2 contracts.
• That's it. You'd buy 2 shares of INFY.

Stop Placement Tips:

• INFY respects round numbers ($18.00, $19.00). Place stops 10-15 pips beyond these levels to avoid getting hunted in the volatile open.
• Prior earnings gap levels act as strong support/resistance. Use them.

Overnight Risk: If you hold a swing position, reduce size by 30-50%. INFY can gap on Indian data or RBI decisions while the US is asleep. I once held a position overnight only to see it gap down 4% on weaker-than-expected Indian GDP data at 05:00 UTC. My stop was useless; the loss was instant.

Here’s what I see traders get wrong repeatedly. Avoid these.

1. Trading Pre-Market/After-Hours Like Regular Hours: The spreads are wide and the volume is fake. Entering a market order during these times is asking for a terrible fill. Use limit orders or stay out.
2. Ignoring the INR Correlation: A sharp move in USD/INR will affect INFY, often with a lag. Check the currency pair before entering a trade.
3. Over-sizing Because It's "Cheap": This is the biggest pitfall. "It's only $18 a share, I'll buy 500!" Then it drops 5% and you're out $900. Respect the pip value and volatility.
4. Placing Stops Too Tight at the Open: The first 30 minutes are chaotic. A 10-pip stop will get taken out by noise 7 times out of 10. Give the trade room to breathe.
5. Forgetting Indian Business Hours: Major Infosys announcements are timed for India. If you're not aware when their trading day starts (around 03:45 UTC), you'll be late to the news.