Infosys results: Up by more than 13% But exactly within the range!

By Waves Strategy Advisors, For more information visit www.wavesstrategy.com

Today we had Q1 2013 results of Indian IT bellwether- Infosys. 

Company has reported better-than-expected 4 percent year-on-year rise.In first quarter consolidated net profit at Rs 2,374 crore, helped by new deal wins. The company also maintained its earlier US Dollar revenue growth guidance for FY14.

In the opening trade, Infosys shares rose more than 13% and currently trading near 2776 onNSE. In today’s Equity report – The Financial Waves STU we have covered this stock in morning before results were announced and shown completion of 5 wave structure on downside and expected an up move. This stock is having a weightage of approx 7.33% on index as of now & so it has contributed a rise in Nifty today.

Below we have shown 120 mins chart of Infosys pricked up from the equity report

Infosys 120 mins chart:

Published today before market opened:

Infosys 120 mins chart after result announced, currently quoting near 2795

Infosys weekly chart:

Wave Analysis:

In morning before results were declared we mentioned the following:

As seen above in weekly chart of Infosys, since 2011 prices are moving in the big range of 2050-3000 levels. In last two years (2011-2012) whenever company has declared the quarterly results we have observed gap up or gap down opening and prices moved violently. Even in this aggressive moves prices managed to protect 2050 and 3000 levels on downside and upside respectively. This signifies the importance of both these levels. If results drive the stock prices then why is it contained only within this range to the point? The stock has witnessed Gap up and Gap down moves of anywhere between 7% and 20% but this range has worked brilliantly so far.

Today we have Q1 2013 results of Infosys and every one may be expecting gap up or gap down move in this stock. Technically, prices managed to protect the strong support of 2050 and turned on upside for 3^rd time (shown by blue symbol). This indicates probably an up move in today’s trading session….. But if results are below expectations then there can be a spike towards 2050 and this level should be well respected we think.

As shown in 120 mins chart, prices are moving higher in the small blue channel and retraced almost 50% of wave C. At present, prices are moving near the immediate resistance of 2600. A move above 2600 will open up the further positive possibilities…..

In short, move above 2600 will continue the uptrend and prices can move higher towards 2750/2800 levels. Infosys is currently quoting at “2795”

There is more in depth analysis of Infosys in “The Financial Waves Short term update”research report published on daily basis.

Do not wait for outcome of an event to take trading decisions. Think objectively and catch the trend before it is over. This is only the one chart which is shown above. Equity research report also covers Nifty and 3 stocks. Charges for this equity research is INR 2000 and the subscription can be done directly from http://wavesstrategy.com/payment. For more information write to us at helpdesk@wavesstrategy.com or call on +912228831358 / +91 22 9920422202