₹666.35 CMP :
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.