Last week, the stock of Infosys managed to advance 1.3 per cent amid volatility in the market. However, the stock faces key resistance ahead at Rs.1,075 — the 200-day moving average and a key resistance at Rs.1,100.
Only a strong rally above these levels will alter the stock’s short-term downtrend that has been in place from the October peak of Rs.1,219. Such a rally will pave the way for an up move to Rs.1,130 and then to Rs.1,160 levels in the medium term.
The indicators in the daily chart are just showing signs of recovering from the oversold levels. But failure to move past the aforementioned key resistances will drag the stock down to Rs.1,030 and then to Rs.1,010 levels in the medium term. Next key supports are at Rs.990 and Rs.970.
Traders with a short-term perspective should tread with caution as long as the stock trades below Rs.1,100 levels.
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