Infosys can be bought at the current level and on dips to Rs 740 with a stop loss below Rs 710 for a target of Rs 850, says Ashish Chaturmohta of Sanctum Wealth Management.
Ashish Chaturmohta
Infosys is in an uptrend as it is forming higher-tops-and-high-bottom formation for the last one year. The recent decline has taken support at the rising support trendline connecting lows of Rs 551, Rs 585 and Rs 618.
The price has seen a bounce from 21-days exponential moving average (EMA) which has acted as a support for the stock in the past.
The stock touched an absolute and closing new all-time high of Rs 754.9 and Rs 746.7 respectively on Monday.
The stock has closed above the upper Bollinger band on the daily charts which suggests a continuation of the trend in the direction of the breakout. The MACD line has given a positive crossover with its average on the daily chart and taken support at its average on the weekly chart.
Thus, Infosys can be bought at the current level and on dips to Rs 740 with a stop loss below Rs 710 for a target of Rs 850.