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Infosys Technical Analysis #5: Buy | Target Rs 735 | Arijit Banerjee

OUR RECOMMENDATION

CMP#661.05
IdeaBUY
Buy Range650 – 670
Target710 – 735
StopLoss*630
Duration40 – 50 Trading Sessions
Potential Return^11 – 15%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
661.05BUY650 – 670710 – 73563040 – 50 Trading Sessions11 – 15%

# CMP on Nov 29, 2018
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 704.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Founded in 1981, Infosys is a global service provider of IT Consulting and business process service. Headquarter in Bengaluru, their clientele spans over 50 countries having a range of products used for Financial Services, Manufacturing, Healthcare, Logistics, Energy & Utilities etc. The company reported a standalone net profit of Rs 4110 crore for the Q2FY19, compared to Rs 3726 crore reported during the corresponding period of 2017-18.

Stock Data
NSE CodeINFY
SectorIT
52W High754.9
52W Low478.53
Face Value5
Relative Performance_Infosys vs Nifty IT Index

TECHNICAL OBSERVATIONS (DAILY)

  • Technically the stock had been moving in a higher top and higher bottom formation in last 4 days indicating positive bias.
  • After a consistent downtrend in the last 35 days, the stock price has shifted into a sharp upside bounce in the last 3 days.
  • The stock broke out of the falling resistance line on the back of huge volumes. This indicates that the stock looks set to continue the next leg of its uptrend.
  • The price closed above 10 and 20 days Moving Average crossover which considered bullish and help to propel further upside movement.
Infosys Chart
Infosys Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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