After struggling to break through the significant resistance zone between Rs.1,100 and Rs.1,110, the stock of Infosys fell 3.7 per cent in the prior week.
The company is scheduled to announce its results for the quarter ending December 31, 2015 on January 14. Since mid-November, the stock has been moving in a wide range between Rs.1,030 and Rs.1,110.
The indicators and oscillators in the daily as well as weekly chart show mixed signals and hover in the neutral region.
A positive outcome from the results will lead to an upward breakthrough of this sideways range and take the stock up to Rs.1,150. However, breakthrough of the lower boundary at Rs.1,030 will strengthen the medium-term downtrend that has been in place since the October peak. It can decline to Rs.1,000 in the short term.
Hence, traders should tread with more caution. Key supports are at Rs.1,050 and Rs.1,030. Resistances are at Rs.1,085 and Rs.1,110.
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