Skip to main content

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.

Disclamer:

All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade nor does it or the publisher of it guarantee any sort of return or the correctness of the post or any materials.

Undertake proper research and advice of your investment consultant before taking any trade.

Trade at your own risk.

Follow me on Twitter : @beta_trade

Popular posts from this blog

CUMMINSIND : Sell/Short @ 910-911 Target 880-860-840 SL 918

Dear Readers, If you see the long term chart of CUMMINSIND, you would find that the stock has been witnessing a sideways movement making higher lows and lower highs. The internal built of the first leg from the low of 746.15 to the high of 947 and third leg from the low of 747.55 to 921 looks like impulsive movements, please refer to the chart for the reference. Let us name those impulsive movements wave 'a' and 'c' for time being Now, if you see the chart, whereby a resistance line has been drawn conjoining the two tops of these two impulsive movements, 947 and 921, end point of 'a' and 'c', the stock has reached/ touched the resistance line and may find a strong resistance over this point. This is a suitable point where the traders can sell or go short on this stock at current price of 910 for an immediate targets of 880, 860 and 840 with the stop loss of 918 on upper side. Disclamer : All views, charts, comments, post or ...
Read more

NIFTY: An Update

Fellow Readers, Few days back we have discussed about the Nifty, which was making new highs despite sluggishness witnessed in many leading stock. The question that arose in the mind was whether the current run to 'All Time New High' is a boost to a new bull run or it is a trap for positional and day traders? Though, the answer to this question is not as easy as it seems, and who know what is held beneath the future. Still, with genuine and continuous efforts we can get better result if not best. An hourly chart of Nifty showing its movement from its recent low of 7893.80 (26/12/2016) to its recent high of 9218.40 (17/03/2017). Beside, there has been shown possible wave counts, giving due consideration to EWT principles. Moreover, a parallel channel line drawn in connection with wave 5 of 'C' or '(iii). From the chart shared above and the parallel channel line shown, it shall be noted that Nifty is either reluctant to break below or taking support at...
Read more

DIVISLAB : Buy @ 645 Target 670, 695 and 710

Dear Readers, The stock of Divis Laboratories has witnessed a sharp fall in today's market. Looking at the current movement in the stock of DIVISLAB on 15 minutes time scale the stock looks good for the buying opportunity. Below is the 15 minute time bar chart of Divis Laboratories Ltd. Besides, giving due consideration to the internal wave count of the fall in the stock of DIVISLAB, this corrective movement seems to have got finished with the making of low of 632.55. Secondly, on the time-scale of 1 minute one may notice that from the low of 632.55 to the high of 669.95, was a sharp rise and shall be considered as an impulsive wave.  On the same time-scale of 1 minute the movement after 669.95, looks like a diagonal triangle (a-b-c-d-e) movement. A sharp rise is expected in the stock on the finishing of the last leg, i.e., 'e', of the diagonal triangle. Moreover, if the stock breaches the low of 632.55, a probable low and strong support for the s...
Read more