The stock of Infosys was very choppy last week and formed a spinning top candlestick pattern implying indecisiveness. After testing the key resistance at around Rs.1,025 and the 200-day moving average line, the stock fell to record an intra-week low at Rs.987 levels.
Both the indicators and oscillators in the daily chart show mixed signals. The stock needs to decisively rally above Rs.1,025 to pave the way for an up move to Rs.1,050 and then to Rs.1,070 levels over the short term.
Therefore, traders with short-term horizon should tread with caution and go long only on a strong rally beyond Rs.1,025 while maintaining a fixed stop-loss. However, lack of strength will keep the stock moving sideways between Rs.970 and Rs.1,025.
Next support is pegged at Rs.950. Medium-term investors can desist from trading at this juncture.
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