The chart below is the weekly chart of INFY (a reader asked my views on it!), as we can see the recent candle formation kinda evening star (red ellipse) doesn’t augur well for INFY! Well they just released their quarterly numbers and they weren’t bad. One more thing whenever there is a talk about excellent corporate governance INFY is a very good example of it! INFY is showing good relative strength but due to overall weakness has got caught at the wrong end. One more thing what makes it very difficult to actively trade (see those spikes on daily charts) is that INFY also moves wildly reacting to the movement of the RUPEE! It has a very good support at 1500(on weekly basis) and can be accumulated there!
The Daily chart below looks spikey (as mentioned earlier); INFY has taken support at 50 periods EMA at 1650. The overhead resistance is at 1800 so any break of this range gives a 150 pointer move on either side depending upon the direction it breaks out of (added those multi-color bands for effects)!!!
Having said that I wish to reiterate I might be a bit rustic here coz INFY is one stock I haven’t tracked for a long time and my analysis is based upon my lil knowledge of charts and their interpretations. So please do a bit of self analysis before pulling the trigger on this one!
4 comments:
Hi Manoj
one tends to get rusty in monsoon, lots of humidity. However who dares wins in this case is it sell on rally or wait for acumulation!!!
Naresh Sir Hi
Yeah humidity is there!
Sell the rally or wait for accumulation....personally I would wait for accumulation...not very comfy with selling and anyway a lot of us don't do FNO (and selling in cash is a luxury the brokers give to few) so waiting to accumulate becomes a necessary EVIL and a good one too!
Cheers!!!
thanks manojbhai for your ur instant view
Jayrang Hi
I am not sure whether this is useful to you or not but I did give it my best shot!
Cheers!
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