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What is the technical outlook for Infosys?
Swaroop B U
Infosys (₹1,340.35): The broader trend is down since the beginning of this year. This downtrend is still intact. Resistance is in the ₹1,500-1,550 region. Support is in the ₹1,250-1,200 region. As seen from the charts, as long as Infosys trades below ₹1,500, the chances are high for it to break ₹1,200. Such a fall can take the share price down to ₹1,100-1,050, which is a strong long-term support zone. So, the current downtrend can possibly find a bottom in this support zone.
A fresh rally from here will mark the beginning of a new long-term uptrend in the stock that can take Infosys’ share price above ₹1,600 again. To avoid the fall to ₹1,100-1,050, the stock has to sustain above ₹1,200 and breach ₹1,550. In that case, a reversal will get confirmed and the stock price can surge to ₹1,800-2,000. Overall, for now it is not the right time to enter this stock. Infosys can be bought either on a fall to ₹1,100 or after a break above ₹1,550 – whichever happens first.
I hold shares of Ipca Laboratories. My average purchase price is ₹1,023. Should I continue to hold this stock or exit with a loss? What is the outlook? I can hold this stock for one year.
Navneet Dwivedi
Ipca Laboratories (₹856.40): The stock has been in a strong downtrend since September 2021. However, the recent bounce from the low of ₹670 made in May is giving an early sign of a reversal. This bounce has happened from just above a strong long-term trendline support as well as the 61.8 per cent Fibonacci retracement support level. However, resistance is around ₹900. A decisive close above ₹900 will confirm the trend reversal.
As seen from the charts, we see high chances for the stock to breach ₹900 in the coming months. Such a break can take Ipca Laboratories’ share price up to ₹1,300 and even higher over the next one year. You can consider accumulating at current levels. Keep a stop-loss at ₹630. Revise the stop-loss up to ₹860 as soon as the stock moves up to ₹980. Move the stop-loss further up to ₹1,080 when Ipca Laboratories’ share price touches ₹1,180. Exit the shares at ₹1,300.
I have shares of Andhra Sugars bought at ₹151 in February last year. What is the outlook for the stock?
V. Subbarao, Mumbai
Andhra Sugars (₹108.30): The stock has been in a strong downtrend since April-end last year. The stock witnessed a bounce after testing the 50-per cent Fibonacci retracement support near ₹99 in March. However, this upmove failed to sustain. Overall, the trend is still down. There is no strong sign of a reversal yet. However, the region between ₹100 and ₹95 seems to be a good support. There are some chances for the stock to form a base around ₹100 and then possibly see a fresh rally.
In any case, the stock price has to rise above ₹130 to confirm a reversal. In case the stock breaks below ₹95, it will come under danger for a steep fall to ₹85-80. On the charts based on the price action, the bias is more inclined for the stock to see more fall from here. It will be better if you can accept the loss rather than holding it with a hope for the price to rise. So, exit the stock with a loss at current levels.
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