Infosys remains range bound with a bearish bias

Infosys (₹1,043)

Infosys made an intra-week high of ₹1,068.65 early last week, but had reversed lower thereafter to close 1.6 per cent lower for the week. The price action on the daily chart suggests that a fall to test the next supports at ₹1,030 and ₹1,025 is likely this week. If the stock manages to reverse higher from these supports, it can bounce to ₹1,060 and ₹1,065. The stock can remain range-bound between ₹1,025 and ₹1,065. But Infosys will come under greater pressure if it breaks and declines decisively below ₹1,025. Such a break will signal the end of the consolidation phase and the resumption of the overall downtrend that was in place since June. In that case, there will be an increased possibility of the stock tumbling below the psychological ₹1,000 level towards ₹935. The price action around ₹935 and ₹900 will need a close watch as that would determine the next leg of move. The region between ₹1,070 and ₹1,072 will continue to remain a crucial resistance which needs to be broken to ease the downside pressure.

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