Infosys (₹1,020.8)

Infosys fell about one per cent last week. Though the weekly candles suggest a range-bound move between ₹1,000 and ₹1,045, the daily charts reflect a slight weakness . Inability to bounce above ₹1,029 may keep the stock under pressure in the near term. In such a scenario, a dip to ₹1,000 or ₹990 is possible in the coming days. The level of ₹990 is a crucial short-term and the 38.2 per cent Fibonacci retracement support. A break below ₹990 may drag the stock to ₹950 or even lower levels . But the moving average indicator is showing signs of bullishness. The 21-week moving average is shying away from the 200-week moving average. This suggests that the downside could be limited. As such, Infosys is more likely to sustain above ₹990. A strong daily close above ₹1,029 can increase the likelihood of the stock breaking above ₹1,045. It will then pave way for fresh rally targeting ₹1,075 and ₹1,100. Investors holding long positions need not panic if the stock breaks below ₹990 as such dips would be a good opportunity to accumulate longs.

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