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The Rs 100 cut in the Infosys stock price on Friday has reversed our positive medium-term view for the stock. The bearish engulfing candle formed on this day implies that the move since August 18 was a distribution phase and not a running triangle as assumed earlier. It is now apparent that the third leg of the down-move from Rs 2,017 peak in June is currently on, with the targets of Rs 1,475 and then Rs 1,271 over the medium-term. This view will be negated if the stock manages to close above Rs 1,800 over the next two weeks.

Immediate supports are at Rs 1,607 and then Rs 1,583. Resistances would be at Rs 1,705 and then Rs 1,750. Short-term traders can play short on a failure to surpass the first resistance.

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