Long position can be initiate in Infosys on a rally above Rs.1,100 with a stop-loss at Rs.1,085

The stock of Infosys, despite a choppy trade, advanced 1.6 per cent last week. It has been in a short-term uptrend from the early July low of Rs.932 levels. 

But the stock continues to test its significant intermediate-term resistance at Rs.1,100 levels. Only a conclusive break out of this resistance will reinforce the bullish momentum and take the stock northwards to Rs.1,122 and then to Rs.1,136 in the medium term. 

Traders with a short-term perspective can consider initiating fresh long position on a rally above Rs.1,100 with a stop-loss at Rs.1,085. If the stock fails to break the resistance, it will continue to trade sideways between Rs.1,060 and Rs.1,100. 

Key supports below Rs.1,060 are at Rs.1,040 and Rs.1,022 levels. A strong decline below Rs.1,022 will mar the short-term uptrend and pull the stock down to Rs.1,000 and then to Rs.986 in the medium term.