Technical Analysis of Indian Equities by Nooresh

Infosys – 2200-3000 – A 800 pointer range – Next Nifty mover

In the last many months we have seen Nifty continues to maintain higher levels and everything else listed going into dumps. We have almost reached a stage where Nifty is becoming irrelevant for a trader or investor.

 

There was a time when people would hedge the portfolio with Nifty Shorts/ or Puts. Now it seems the only hedge is to increase cash because Nifty is in a different trend.

The divergence in Bank Nifty and Nifty has never been so huge in last 5-8 years see this chart http://www.nooreshtech.co.in/2013/07/bank-nifty-and-nifty-major-divergence-pair-trade-short-nifty-and-buy-bank-nifty.html

 

Another index stock which was silent for past many years – Bharti Airtel seems to be now getting into a major reversal – See this chart discussed some days back

 

So we are coming down to a point where one cannot take a trade on basis of Nifty trend. We bounced from 5600 to 6100 but quite a lot of stocks kept going down. And now a dip from 6100 to 5700 and we see some stocks rallying strongly.

 

From now on the focus should be specific stocks and assume the broader market trend to be down and selective moves to continue.

 

Now we come to the part of Index management. Every few months we see a different heavy weight being notched up or down. Be it ITC, HUL, TCS, Reliance, Banks, Pharma etc.

 

The next most important chart which comes on the technical radar which can change the move in Nifty is Infosys.

 

Infosys

 

Technical View:

 

-> The stock has underperformed all the peers like TCS , Wipro , HCLTech and even the smaller ones like Tech Mahindra.

-> There have been huge swings on result days but the next result is 2-3 months away.

-> Major resistance at 3030-3050.

-> The range is of 800 points and will it be going back to the lower end of the range or blow out above 3020-3050.

-> The previous tops at 3400 could be an immediate target in momentum.

 

A confirmation of trend can come only above 3020-3050 but given the index management and underperformance of the stock , we would be keeping a close watch on this index heavyweight.

Given a 8-9% weightage and other IT stocks also tagging along we need to keep a close watch. On breakout quite a few option strategies can be worked out.

 

For now a stock on radar with 3020-3030 as a price point.

 

TECHNICAL ANALYSIS TRAINING SESSION MUMBAI

AUGUST 10-11

Can check a brief on the course outline http://www.nooreshtech.co.in/technical-analysis-training

TECHNICAL ANALYSIS ONLINE TRAINING SESSION IN AUGUST

This would be done through webinars.

For more details mail on nooreshtech@analyseindia.com or call Nooresh 09819225396 Ankit 09899899989

Nooresh Merani

www.analyseindia.com   ( For all our services )

Twitter – https://twitter.com/nooreshtech

Facebook – https://www.facebook.com/nooreshtech

Article by Nooresh Merani

Nooresh has written 2595 articles.

You can follow Nooresh Tech on Facebook and Twitter here.


{ 5 comments… add one }
  • Anon August 2, 2013, 01:30

    Accumulation/Distribution hints at upside breakout

    Reply
  • Arjun August 14, 2013, 18:07

    Sir,

    What’s your target for Infy & Tech M?

    Reply
    • Nooresh August 16, 2013, 17:05

      Infy till it holds 2900-2950 for now can look at 3400

      Reply
  • Ashwini Damani September 5, 2013, 12:10

    As we saw, Infy did hit almost 3100 yesterday…but it seems to be fizzling out today…Do u still think that the above hypothesis will hold

    Reply
    • Nooresh September 5, 2013, 12:32

      Hi,

      One can keep a stoploss at 2950 thats a simpler way.

      Reply

Leave a Comment