₹666.35 CMP :

Flash News Investment - - DIWALI RECOMMENDATION -

In­fosys is In­dia’s sec­ond largest IT com­pany which pro­vides IT so­lu­tions to fi­nan­cial ser­vices, man­u­fac­tur­ing, en­ergy & util­i­ties, com­mu­ni­ca­tion & ser­vices, re­tail, con­sumer pack­aged goods & lo­gis­tics and life sciences & health­care. The com­pany’s con­tin­ued large deals win, re­vival in core ver­ti­cals such as BFSI and re­tail, growth in top ac­counts and trac­tion in dig­i­tal seg­ment (31 per cent of Q2FY19 rev­enue) gives us healthy rev­enue vis­i­bil­ity for the com­ing quar­ters. No­tably, the com­pany’s man­age­ment has main­tained its FY19 rev­enue guid­ance in con­stant cur­rency terms at 6 to 8 per cent and op­er­at­ing mar­gin guid­ance at 22 to 24 per cent. The stock of In­fosys had given a triple top pat­tern break­out at Rs 746-748 on Oc­to­ber 1 and made a new all-time high near Rs 755 level. How­ever, the stock could not sus­tain the lev­els of Rs 746-748 on a clos­ing ba­sis and cor­rected from these lev­els, mak­ing lower tops and lower bot­toms. On Oc­to­ber 26, the stock hit a low of Rs 630, which was its 200-day EMA level. There­after, it gave three con­sec­u­tive daily upticks, where it breached its 100-day EMA on the up­side. Mean­while, the os­cil­la­tors sig­nalled bullish re­ver­sal with a pos­i­tive crossover and jus­ti­fi­able vol­umes. On the monthly time frame too, the stock has re­versed from 38.2% re­trace­ment of the prior up­ward rally from Rs 431 to Rs 755.

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