Short-term traders can look to buy the stock for a target above 1500 levels in the next 3-4 weeks, suggest experts.
The IT stock which is also part of the S&P BSE Sensex has retraced almost 50% of the upmove from July 2023 when the stock was consolidating above 1300 levels.
The S&P BSE Sensex stock rallied to 1500 levels in September 2023, but it failed to hold on to the momentum. The stock was corrected in line with the weak trend seen in benchmark indices.
It has fallen by about 1% in a month but from a 3-month perspective, it is up by over 8%. The stock has not reached the oversold zone yet, but traders can buy for a bounce-back move as it is trading near support levels.
The daily Relative Strength Index (RSI) is placed at 46.2. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed.
In terms of price action, the stock is trading below 10 and 20-DMA but above 5,30,50,100 and 200-DMA on the daily charts.The IT stock recently recorded the formation of Golden Cross on 21 September 2023 on the daily charts where the short-term moving average (50-DMA) crosses above the long-term moving average (200-DMA) from below.
Agencies“Infosys stock has taken support near its 200 DEMA and formed a strong bullish candle on daily scale. The stock is bouncing from its 50% retracement of the previous up move which started from 1305 to 1515 levels,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.
“The Relative Strength Index (RSI) is also bouncing from the oversold territory and risk reward ratio is quite favorable at the current juncture Nifty IT has also retested the breakout on a daily scale and moving higher which may support the up move,” he said.
“Thus, looking at the overall chart set up we recommend to buy the stock while keeping stop loss below 1390 for an upside move towards 1520 levels,” recommended Beriwal.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Top Trending Stocks: Sensex Today Live, SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price