After the result announcement on Friday, the Infosys stock fell sharply. Despite this, the long-term outlook remains positive for the company. We expect the negative bias to continue for a few more days, before the stock show some resilience. The stock finds immediate support at ₹1,906 and resistance at ₹2,103.
F&O pointers: The counter witnessed a rollover of just 23 per cent to May. Option trading indicates that the stock will hover around ₹2,000.
On the other hand, if Infosys recovers and closes at or above ₹2,100, this position will yield a maximum profit of ₹61/contract (or ₹15,250). We advocate traders hold this strategy till the May expiry or the underlying stock hit ₹2,100.
Follow-up: Hold Reliance Communications positions.