Friday, June 6, 2014

A Case Study Of Infosys

           Infosys is in a continuous downtrend since March, in a Bull market and corrected almost 22% till now. While at the same time, Nifty rallied from 6000 to 7500 and trading at life time highs. However, Infosys is still holding its major support of 2950.

          When we look at the fundamentals of the stock then there is a lot of happening within it. The overall IT sector is in a downtrend due to Rupee strengthening against US dollar, which is major key of driving revenue.

          In Infosys, return of  Mr N.R Narayan Murthy as chairman last September, leads to resignation of many top executives one by one till now. The client base is still behind from TCS  and Wipro.

         There could be a lot more unknown factors behind its price decline, which we may not know about. It is also possible that the decline may have been overdone, and, we can say this since prices are near a support level. So it is good to keep an eye on chart, wait until (a) it breaks from support or (b) bounce back from support. There is likely to be a trade in either event.


Vibhor Jain said...

The right side of the head with gap downs and long bearish candles looks extremely weak. I doubt the support will hold.

tejas salunkhe said...

Hello sir may i know if its safe to invest in Infosys anymore...?