Infosys continues to sustain above ₹1,000 but is still not gaining strength for a fresh rally. Price action over the last one month on the chart suggests that the trades in the stock are getting crowded between ₹990 and ₹1,040. This signals that a strong and swift move is on the cards anytime soon. Our outlook continues to remain bullish. A sharp move targeting ₹1,070 and ₹1,075 is possible on a strong break above ₹1,040 in the near term. Further break above ₹1,075 may take Infosys higher to ₹1,090 and ₹1,130 thereafter. As mentioned last week, ₹1,090 is a crucial resistance. A decisive break above this hurdle will confirm that the downtrend that was in place since June last year has reversed. In such a scenario, the doors will open for Infosys to revisit ₹1,200 and ₹1,250 levels over the medium term. It will also increase the likelihood of the stock surging to new highs from a long-term perspective. Investors can hold the long positions. The 21-day moving average at ₹1,022 is a key near-term support. The stock may witness a near-term fall to ₹1,000 or ₹985 if it declines below this support.
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