On Tuesday, Infosys stocks were up by over 2.4 per cent on NSE at Rs 1160.55 around 2:50 pm. In the process, it surpassed its 52-week high of Rs 1156 hitting another life time high of 1166. It attained 52-week low of Rs 509.25 on 19 March 2020.. This stock has seen a strong rally over the 4-5 trading sessions. The company will be announcing its September Quarter results on Wednesday and a robust earnings results are expected.

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What should the investors do about this counter? Are the current prices, right levels to enter the market? See what technical analyst Nilesh Jain of Anand Rathi recommends to the investors.

Jain said that Infosys has had a great run over the last 4-5 trading sessions. After the index heavy weight Tata Consultancy Services’ declared the Q2 FY21 results along with the announcement of a buyback offer worth Rs 16000 cr, most IT stocks have gained on expectations of a much stronger results, he added.

While Infosys is expected to post strong results, this stock could see some profit booking going forward, Jain said adding that most of the positives have been discounted in the markets by now. He said that he expected profit booking in the immediate to near term. Though the levels around Rs 1200 were within the reach over the next few trading sessions.

This should be used as an opportunity for taking fresh positions on this stock with a long term horizon, he added. The technical charts show strength and people who already have long term perspective should not worry about corrections here or there.

Jain sees Rs 1050-Rs 1100 as the right levels to enter this stock, advocation a buy on dips.

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The long term investors need not change their strategy unless some drastic negative commentary is given by the company in the quarterly results. In such a scenario the stop loss should be around Rs 1130, he further said.