Infosys@ Recommended a Buy....A Sell....A buy...All In Advance!!!

We recommended Buy in Infosys when it was trading around 2200+- where many were on fear mode.
12th July 2012@ http://moneymystery.blogspot.in/2012/07/infosyswhat-now.html

The given support level acted like anything and on 2 occasion it took support & bounced heavily from there.

On 25th Feb 2014 We came up with an article where we recommended stay away or book Profit in IT stock at the time when Infosys was trading around 3750-3800 and everyone was very bullish. The Stock corrected from 3800 to 3200 and while it was trading at 3200 on 10th April 2014 we gave downside target of upto 3000-2900 in the comment post and said that buying interest will be seen there where on 30th May it went on to hit intraday low of 2880 and closed above 2900.

The buying interest was seen as expected and from there it went on to hit 3400 on 8th july 2014 thereby generating return of 18% in just over a month from the lower recommended level.

Check the this article dated 25th Feb 2014@ http://moneymystery.blogspot.in/2014/02/time-to-dump-it-stock-why.html#comment-form

When buy recommended@ Infy from 2200 to 3800 Return Generated@ Around 70%

When asked to stay away or book profit@ Infy from 3800 to 2900, Down almost 24%

When again recommended buy@ Infy from 2900 to 3400, Return Generated @ Around 18%

Time to stay away or book profit in IT stock!!! Why?

Nasdaq composite which is highly followed in the U.S. as an indicator of the performance of stocks of technology companies is heading toward its ever toughest resistance of 4500 which is still 200 points away from its current level of 4300.

When Nasdaq was trading around 2900+ we gave away upside target of upto 3600 and above that gave away upside target of upto 3966 to 4500 where it made high of 4311 so far.

I believe the time has come to book or get out of IT stock as Nasdaq headed higher towards 4500 and its better to remain in cash. Whether 4500 will be hit or not I don't know...its the maximum which i see as of now.

Why??? I am explaining with my logic@

Since Nasdaq was around 2950-3000+ various of the Indian IT stocks including Infosys, TCS or HCL Tech were available at dirt cheap price.... 2200(Infy) now 3750, 1180(Tcs) now 2200, 480 (HCL Tech) now 1550...etc.,

We still follow US market movement at its best. As am expecting Nasdaq to face tough resistance close to 4500 and see a big technical correction somewhere from there which will hit IT stock hard. The returns have been splendid and keeping the greed out its better to book profit and keep big cash aside.

My 2nd Logic@

Rupee depreciation has helped IT companies earn big revenues and profits. If NDA comes to power which looks certain as of now then the fate of INR is going to change where I see Rupee regaining the lost strength and getting back to 50 odd levels which is no good news for IT cos. So discounting all these assumption I feel its better to stay away from IT stocks and in both the logic its a no win situation for IT cos.

Nasdaq faces tough resistance around 4500-4572 which is still 6-7% away from current level...this's the area where it will get very vulnerable and stock prices could behave madly on the upside as well on the downside. See if your heart is strong enough to face that situation and if not then stay away.

Closing above 4600 on continuous basis could make it strong again where we can see fresh rally in IT stock or vice versa where Nasdaq can try to hit level of upto 5000-5100.

So trade or invest accordingly.



Note: Above are my personal opinion and I might get wrong.


Subscribe to my services...mail me at manish843@gmail.com

Infosys@ Back 2 Back Return close to 32%

Our given support level on Infosys worked 2nd time in a row over the past one year giving away return of around 32% on both occasion. This time it made low of 2186 on April 29th 2013 from where it bounced back to 2905 as of today. 

One is always free to book profit at any level.


***Single Idea@ Multiple Trade***

Infosys@ Wonder Levels

Wonder Levels@ 2178/2175 was the level we talked off below which there was weakness & above it bullishness. We found that below the mentioned level it touched 2101 on 26th july where our downside level was given upto 2064/1990 however above the level it went on to hit 2310 in just few trading days.

Check out my message dated 12th July on Infosys.

Infosys....What Now???

Technical View on Infosys@ It has got excellent support in the region of 2204/2178 and I expect it to take support & bounce from the above mentioned level. Only a closing below 2178/2175 can take it lower upto 2064/1990. We have given both side view, so trade accordingly.