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Is Infosys a good bet post Rs 8260-crore buyback? Here's what charts say

A building in the Infosys Thiruvananthapuram in Technopark Phase 3 | Photo
NIFTY IT: The weekly chart shows a strong support of 50-weekly moving average (WMA) from the  last two years, currently placed at 15,357 levels. Though the index did break the average in recent trading sessions, it failed to make a convincing breakdown. Going ahead, if the index conquers 16,000 mark with volumes, a rally of another 500 – 700 points cannot be ruled out. A significant strength is shown by Relative Strength Index (RSI). Positive divergence support are also indicating an upside, charts suggest. Similarly, Moving Average Convergence Divergence (MACD) has also crossed the zero line upward, which is a signal of a possible up move in the days ahead. CLICK HERE FOR DETAILED CHART VIEW


INFOSYS LIMITED (INFY): The stock has absorbed all the selling pressure in the range of Rs 760 – Rs 770 and is ready for a fresh upside. Although it witnessed mild selling above Rs 800 mark, the overall trends still looks bullish. It did breach 200-days moving average (DMA), but could not give decisive breakdown since November 2017. The 50 DMA is placed at Rs 765, which is an immediate support level for the stock. If the stock is able to move beyond its resistance level of Rs 810 in the next one week, an upside towards Rs 840 and Rs 860 cannot be ruled out. The overall trend remains positive till the stock trades above zero line. CLICK HERE FOR DETAILED CHART VIEW


ALSO READ: Infosys closes Rs 8,260-cr buyback offer, takes back 11.05 cr shares

The 'higher highs, higher lows' formation on the charts has consistently boosted the positive sentiment, weekly charts suggest. Going forward, till the counter trades above the lower rising trendline, bullishness is here to stay. Taking a broader perspective, the 200 DMA has not been broken decisively since July 2017. The immediate support comes at Rs 2,173 and Rs 2,111, respective 50 DMA and 100 DMA. CLICK HERE FOR DETAILED CHART VIEW


HCL TECHNOLOGIES (HCLTECH): The monthly chart shows “Bullish engulfing” candlestick pattern, suggesting a bigger breakout above Rs 1,130 mark. After a recent consolidation in the range of Rs 1,000 – Rs 1,040, the counter is heading towards conquering the Rs 1,100 mark. The trend remains sluggish, as volumes remain average. The daily and weekly charts shows a possibiity of profit booking at subsequent highs. The RSI and MACD indicators are trading with positive crossovers - a signal of upward trend in the short-term as per the daily chart. CLICK HERE FOR DETAILED CHART VIEW



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