Technical Analysis

Infosys hovers above a crucial support

GURUMURTHY K | Updated on March 09, 2018 Published on April 23, 2017

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Infosys (₹923.7)

Infosys continued to trade lower last week but did not see a heavy sell-off. The stock traded in a narrow range between ₹912 and ₹934 last week. The price action in the coming weeks will decide the next move for the stock. If the stock manages to sustain above ₹900, it can rise to ₹980 and ₹1,000 levels once again. Such a rally will keep the broader ₹900-₹1,045 range intact. The stock has been stuck in this range since November 2016. On the other hand, if Infosys falls below ₹900, it can test ₹880 initially. A strong break below the level of ₹880 will increase the likelihood of the fall extending to ₹815 or ₹800. The ₹815-₹800 range is a strong long-term support, which is likely to halt the downtrend that has been in place since June 2016. A strong reversal from this support zone will be an initial sign to indicate that a fresh leg of a long-term up-move has begun. Investors can hold the long positions and accumulate at ₹900 and at ₹850 if the stock breaks and falls below the level of ₹900.

Published on April 23, 2017
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