Wednesday, April 16, 2014

Infosys result announcement but moved as per Elliott wave!

Infosys announced its 4th quarter results yesterday. In morning itself before the announcement we published our view on this stock with key levels to watch. Today morning we published crucial levels and direction of TCS. To subscribe to this daily equity research report "The Financial Waves short term update" along with view on Nifty visit

Infosys Daily chart: 

Infosys 120 mins chart:
The below article is picked up from daily research report published on 15th April 2014 morning before Equity market opened.

Wave Analysis:
IT bellwether Infosys quarterly result is due today. From the start of March 2014, stock has corrected from 3850 to 3160 levels and currently arrived near the crucial levels. The big Gap in middle is when Infosys declared the quarter from Jan to March 2014 can see subdued growth. So the negative news should already be factored into the price.

As shown in daily chart, from mid April 2013 prices started to move higher in form of impulsive structure. During this span, stock started its journey from 2200 levels and touched life time high of 3850 in mid of March 2014. After that, prices showed sharp correction and hovering near 38.2% retracement level of the prior up move. Even in the Friday’s trading session, stock momentarily broke this important level but later recovered sharply from the lows.

As per Elliott wave perspective, the down move from the highs is clearly divided in 5 waves and the stock is trading at the matured stage of correction as RSI indicates positive divergence. However at current level, we do not have any positive price confirmation.

As shown in 120 mins chart, prices have been moving in the downward sloping red channel and in last trading session, stock exactly closed at the resistance of the channel. As per wave perspective, any faster move above 3280 followed by 3360 levels, will suggest that wave a is complete and wave b started on upside. Money Flow index is showing triple positive divergence and also arrived near the level of 20 from where it has reversed many times. However, any move below 3150 level will suggest extension of correction.

In short, Infosys is trading at make or break level. Any move above 3280 will break ii-iv trendline in faster time and provide first positive confirmation and break above 3360 will open up further positive possibilities towards 3580/3600 levels.

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1 comment:

  1. No wonder about the share market of Infosys. They are always in flying colours!