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Infosys Analysis

SELL CALL ON INFOSYS


On a daily chart we see a trend break down in the short term, the medium term trend has small support at 3375. Despite showing higher highs on the daily chart we see strong negative divergences (shown in the below image) upsides seems to have been capped at 3600 plus .we see supply on our band theory as the band suggest we are at the highest point of the greed.
On the short term we also see an over lapping in the last leg of this move, where the previous immediate highs have been broken by new immediate lows.


Fibonacci retracement levels

Retracement levels from the previous whole move starts from 2200 to 3582 is the approx 1400 Rupees move.

Following are the Fibonacci retracement Levels which can be support levels.
At 38.20% Retracement - 3047
At 50.00% Retracement - 2887
At 61.80% Retracement -2722


The 233 Days EMA is at close to 3000, and in weekly 233 EMA is close to 2600 where there is gap also.

Summary
Given all the above analysis we recommend an exit on Infosys in the medium term. Those how have risk taking ability can buy 3300 puts at 61 which seems to be a good risk rewards returns.




(09.01.2014)


INFOSYS DAILY CHART



























Disclaimer:All information given here is largely based on technical analysis which is highly dynamic in nature and relevant only at a particular point of time. Users are advised to pursue these recommendations only at their own risk and first consult their personal investment advisor when making investment decisions. We are not liable and we take no responsibility for any loss that you incure by trading/investing on our recommendations. these study are posted for educational purpose only.

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