Infosys Results Time - Will This Time Be Any Different?
Infosys the Bell-weather of the IT has made it a habit of rallying till the penultimate day of the Results & falls on the Result day (Falls are to the magnitude of atleast 3% or more). Will the history repeat itself or will it be different this time? Results are due on Wednesday, Oct 12th 2011. Today It made a strong case with returns of 3%.
Infosys - 1 Year Daily Chart
The stock seems to be in an Short Term Uptrend. It's moving in a upward sloping Trend Channel. Break of the trend channel would lead to a fierce rally. But the channel looks unlikely to be broken in the run up to the Result Day.
Fundamentally: All eyes would be on Infosys' guidance for the Second half of the financial year & how much has the Dollar appreciation boosted their current margins.
MOSL has come up with their estimates on the IT Bell-weather. According to the research firm, Infosys September quarter net revenue is expected to go up by 6% at Rs 7934 crore, quarter-on-quarter, QoQ basis. The company's net profit is expected to go up by 7% at Rs 1842.1 crore on QoQ basis.
Technically: Price is above its 50 D EMA & SMA. 100 SMA is near 2625 levels. Resistance would be around the Unfilled Gap of 2704-2643 levels. Above this the next resistance comes around the levels of another Unfilled gap 2888-2850.
2800 is also the level of 50% retracement of the fall from 3500 to 2161 levels.
Indicators: RSI is above 50 indicating strength in the current movement & MACD has moved to positive territory with a Buy Mode.
Bottom Line: Stock looks to be in a buy mode. Would be interesting to note how it would negotiate the Gaps. It's movement will go a long way in directing NIFTY's march too.
Market Wisdom: If Price is above the Gap, the Gap would act as Support. Conversely if Price is below the Gap, the Gap would act as Resistance.
*SMA - Simple Moving Average
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