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Infosys: On The Eve Of Q4 Earnings

Dear Fellow Readers,

The management of Infosys Ltd (INFY) is about to declare its Q4 earnings on 13th April, 2017. The stock has been under bearish mode since June 2016 after hitting its all time high price of 1279.30 per share. The movement in the stock of Infosys Ltd from the low of 66.10 made in September, 2001 to its all time high of 1279.30 was an impulsive run and the stock may witness correction in simple zigzag (A-B-C) pattern upto the level of 816.00, being the 38.20% retracement level of the total rise from 66.10 to 1279.30 level.

The fall from its all time high price of 1279.30 to its low price of 901 per share, looks to be an impulsive run, whereby the stock has completed its first leg, i.e., 'A', of its simple zigzag corrective pattern. Besides, its seems that the stock of Infosys Ltd has completed its second leg, i.e., 'B', in a-b-c (901-1022, a -901.15, b - 1044, c) pattern, and looks to have started its last leg 'C' which might another impulsive run.

The stock has witnessed decline of 93.90 points from its recent top of 1044 to 950.10. Within this fall the stock looks to have completed three waves and under the process of completing its fourth waves, I suppose.

The corrective pattern that stock may witness can be an extended flat or complex, whereby the first leg of this probable correction seems to have completed at 976.90 in three wave structure and the second leg may get completed around 939.85, being a 138.20% retracement level of first leg.

If the stock takes support at or around 939.85, breaching its previous low of 950.10, and then it may see a temporary short term up move to the level of 1021.10, being 165.00% extension level of first leg and also being 78.60% retracement level of total fall of 91.40 from 1041.50  to 950.10.

One should note that if the stock takes support at above expected level, there may appear a bullish/positive divergence on the stock, which may give a boost to temporary up move in the stock.


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