Friday, April 12, 2013

Infosys results – Down by more than 20%. What is driving the stock prices???

By Waves Strategy Advisors, For more information on daily research report visit

Infosys results declared on 12th April 2013 :
Infosys fourth quarter net profit rose slightly higher-than-expected 3 percent year-on-year  (1 percent quarter-on-quarter) to Rs 2,394 crore, helped by higher other income and lower income tax expenses.
Results were positive but then too stock tanked 15% on opening and is currently down by more than 20% i.e. a fall of whole Rs. 600 on a single day. This is a disaster for a blue chip stock and it has been happening time and again. Infosys results are now known to produce a movement or anywhere between 10% to 20% on result day and then consolidate for months. This stock is having a weightage of approx 6.75% on index as of now & so it has contributed a fall of more than 40 points on Nifty. One may fall short to find objective fundamental reasons for such poor performance and trading will be challenging if you take action after the news announcement. However during such situation as well technical analysis can come handy to explain the major trend of this stock. Read further to know more:
The following excerpt is been picked from our research report “The Financial Waves” which was published on 11th April 2013
Infosys 120 mins chart:
Infosys chart 120 mins as on 3.00 pm
 Wave Analysis:
Following was published a day before Infosys results were announced -
As seen in daily chart of Infosys, we can observe that prices are moving in a big range of 3000-2100 from past 2 years. This year prices faced the resistance of 3000 twice and fell steeply. Also we can see that prices made a double top formation and had given a fresh break on downside. To open further negative possibilities, it needs to move below 2730 which can accelerate selling pressure taking prices lower till 2550 levels.
As shown on 120 mins chart, prices after breaking the upward sloping blue channel prices thereby started moving in a sideways to negative direction.
From wave perspective, prices have ended minor wave v of intermediate wave B near 3000 levels and started the next leg on downside in the form of wave C
In short, as far as 3000 is protected on upside our bias for Infosys is negative. A move  below 2730 will take prices lower till 2550…
Infosys is currently (12th April, 3:00 pm) quoting at 2310, down by 20% - 600 points!
Don’t follow the crowd, think objectively. Catch the trend before it is over. To know what is next for Nifty and 3 stocks that can give good trading opportunity visit or write to us at or call on +91 9920422202 / +91 22 28831358.

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