There are few observations on Infy daily chart which make it bearish:
- It met with resistance near 1150 level. In mid July, it got sold off around same level near 1150.
- The candlestick pattern for past 2 days make a classic bearish engulfing pattern. Only a close above 1145 will cancel this pattern.
- Seems to have support close to 1030~50 levels
- Slow stochastic has given a sell signal.
- MACD and RSI pointing to bearish indication.
- However, it should be noted that any short trade in Infy requires extreme caution and very tight stop loss.
- Even with the bearish candlestick pattern the trend is still “Up” so the short position could be very risky.
- Also, the option chain indicates 1060~1140 range for Infy in the coming days. This means buying OTM put options may not be profitable trading strategy.
- Even if the analysis is correct, we could see 1150 levels once again before further fall in price.
INFY Daily Chart (28-Sep-2015)
Disclaimer: Even though I am sharing my analysis on this blog, I am not recommending others to trade or invest based on my work. Please do your own research before making any trade or investment decisions. I do not take any responsibility for your profits & losses.