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Tech Question: How far can Infosys fall?

What’s the technical outlook for the inventory of Infosys?

Mohammed Hanif

Infosys (₹1,503.35): The inventory was caught inside a sideways vary of ₹1,650 and ₹1,950 since September 2021. It broke this vary on the draw back final month and has been falling since then. The present development is down. Fast assist is at ₹1,491 – the 21-Month Shifting Common. If the inventory manages to bounce from right here, it could face resistance at ₹1,600 and ₹1,650. As such, the upside is prone to be capped at ₹1,600-₹1,650 for now. A break under ₹1,491 can drag Infosys right down to ₹1,400 – the 38.2 per cent Fibonacci retracement assist stage.  

Whether or not the inventory will handle to bounce from ₹1,400 or not will likely be very essential. A bounce from ₹1,400 can take Infosys as much as ₹1,600. It is also an preliminary signal of a development reversal. Nonetheless, the inventory should rise previous ₹1,650 decisively to verify a development reversal. In case Infosys breaks under ₹1,400, a a lot steeper fall to ₹1,250-₹1,200 may be seen. If you’re intending to purchase the inventory, you need to wait. See if the inventory is bouncing again from ₹1,400 or extending the autumn to ₹1,200 after which determine accordingly. For now, one can keep out of this inventory.

I’ve purchased shares of REC at ₹120.5. Can I maintain it for six months? What’s the outlook?

Sidhanth

REC (₹114.05): The present development is down. From an even bigger image, the inventory of REC has been broadly range-bound between ₹70 and ₹225 for greater than a decade now. Inside this development, it made a excessive of ₹168.7 in October and has been coming down since then. Robust resistance now could be within the ₹130-₹135 area. The probabilities are excessive for the inventory to fall in direction of ₹80 over the following two-three months. Thereafter a recent rally can start wherever from the ₹80-₹70 area, which might take REC as much as ₹170 once more.

A robust break above ₹170 will then take the inventory as much as ₹200-₹220 – the higher finish of the long-term vary. You’ll be able to exit the inventory with minimal loss now. Watch for the autumn and purchase the inventory once more at ₹83. Accumulate extra at ₹76. Hold a stop-loss at ₹67. Transfer the stop-loss as much as ₹90 as quickly because the inventory strikes as much as ₹140. E book partial earnings, say, for 40 per cent of your holding at ₹168. Then transfer the stop-loss for the remainder of the holdings to ₹125. Exit the remaining at ₹210.

I’m holding shares of Mahanagar Gasoline. Ought to I exit the inventory and guide loss now or ought to I wait?

Indraneel Mukherjee

Mahanagar Gasoline (₹740.95): The inventory is underneath strain. The bounce from the February low of ₹680.2 did not breach ₹800 decisively. The inventory made a excessive of ₹862 in April and has come off sharply once more.

A really essential assist stage is at ₹670. If the inventory manages to maintain above this assist, a recent rally to ₹1,150-₹1,200 is feasible over the long run. But when it breaks under ₹670, a steeper fall to ₹510-₹500 is feasible. Since you haven’t talked about your buy costs, it turns into troublesome to advise. When you’ve got the chance urge for food to digest extra loss, then maintain the inventory with a stop-loss at ₹640. Purchase extra when the inventory falls to ₹680. If the inventory begins to rise from ₹670, transfer the stop-loss as much as ₹780 as quickly as the worth goes above ₹880. Transfer the stop-loss additional as much as ₹1,020. when the inventory touches ₹1,100. Exit at ₹1,180.

Ship your queries to techtrail@thehindu.co.in

Revealed on

Could 14, 2022


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