Technical Analysis

Infosys may test key resistance

GURUMURTHY K | Updated on March 10, 2018 Published on September 18, 2016

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Infosys (₹1,060)

Infosys was up 2.4 per cent last week. The stock reversing from its 21-day moving average at ₹1,038 — a significant support level — in the final trading session last week is a key development on the charts that needs to be watched closely. Technically, it eases the pressure on the stock for the near term. The stock can rise to test the resistance within the ₹1,070-₹1,072 band this week. If it manages to breach ₹1,072 decisively, the rally can extend to ₹1,080 or even ₹1,090, going ahead. In such a scenario, the fall to ₹930 or lower levels predicted over the last few weeks may be delayed, but cannot be ruled out. The possibility of a fall to ₹930 levels will be negated only if Infosys manages to break the broad medium-term resistance zone of ₹1,100-₹1,150. On the other hand, if Infosys reverses lower from the ₹1,070-₹1,072, it can fall to test the 21-day moving average at ₹1,038. A strong break below it can drag the stock lower to ₹1,025 thereafter.

Published on September 18, 2016
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