Published on: January 12, 2024
Infosys, one of India’s leading IT giants, recently disclosed its quarterly numbers, sparking interest among investors on both Wall Street and the D-Street. The Infosys ADR on the New York Stock Exchange (NYSE) closed with a positive gain of 3.98% at $18.82, hinting at a potentially optimistic opening for the stock in the Indian markets.
Considering the gains of Infosys share price of ADR, should you buy on NSE?
Infosys Weekly Chart, NSE
The weekly chart of Infosys on the NSE, a bullish scenario is apparent as long as the crucial support level of Rs.1,400 remains intact. The bulls are in control, consistently finding support at the rising trendline (marked in red) at Rs.1,400. This level becomes a crucial indicator for traders and investors, signifying the bullish trend’s current strength.
The mid-week rally witnessed in November 2023, from Rs.1,433 to Rs.1,588, serves as a pivotal battleground for both the bulls and bears. Rs.1,433 is anticipated to be a significant support level, providing a foundation for the upward momentum. At the same time, Rs.1,588 poses a formidable resistance that must be breached for the bullish trend to continue.
Further complicating the picture, the gap area ranging from Rs.1,650 to Rs.1,750 emerges as a substantial long-term resistance zone. Traders and analysts closely monitor this region, as crossing it could signify a shift in the stock’s trajectory.
Technical analysts often focus on moving averages for insights into a stock’s momentum; in the case of Infosys, the bullish crossover of the 50-week Exponential Moving Average (WEMA) over the 200-WEMA results in a Golden Cross. This occurrence suggests that the bulls control the short to medium-term trend, indicating positive momentum in the stock’s value.
While Infosys is a prominent player in the IT sector, it is essential to consider the broader market dynamics. As the mid-cap and certain large-cap stocks outperform Infosys share price, investors face a crucial decision – should they buy Infosys or opt for an outperformer?
Infosys stands at a crossroads, with its performance influenced by domestic and international market dynamics. The technical analysis on the NSE chart paints a picture of a stock enjoying bullish momentum, with key support levels and resistance zones clearly defined.
