Infosys is not gaining enough momentum to rally further. The stock made an intraday week high of Rs.1,234 but reversed lower immediately. It hovered around the psychological Rs.1,200 level for most part of the week before closing almost flat for the week. Though the broader view is positive, the immediate outlook is unclear.
The stock might consolidate within its support zone of Rs.1,180-1,175 and resistance at Rs.1,235. Traders with a short-term perspective can stay on the sidelines at the moment. However, an immediate break below Rs.1,175 looks less probable.
Wait for dips and go long on a reversal from the above mentioned support zone. Stop-loss can be placed at Rs.1,155 for the target of Rs.1,250. A strong break above the resistance at Rs.1,235 can take Infosys to Rs.1,260.
The stock will come under pressure in the short term, if it breaks below the 21-day moving average support at Rs.1,175. The next target is Rs.1,145.