In the week ago, the stock of Infosys was volatile and formed a spinning top candlestick pattern implying indecisiveness. The stock faces a key medium-term resistance in the band between Rs.1,170 and Rs.1,180 levels.
Weakening of the rupee can trigger an upmove in the stock. This has the potential to break through the key resistance zone. So, traders with a short-term perspective can initiate long positions as the stock nears this resistance level.
We reiterate that a decisive breakthrough can take the contract northwards to Rs.1,200 and then to Rs.1,220 levels in the short term. The indicators on the daily chart are positively biased. The stock trades well above its 50- and 200-day moving averages.
However, a fall below the immediate support level of Rs,1,100 can mitigate the bullish trend and drag the stock down to the medium term trend-deciding support level of Rs.1,060. Key supports below Rs.1,060 are pegged at Rs.1,030 and Rs.1,000.
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