Despite the wobble on Monday that made the stock decline to Rs 1,288, Infosys closed the week on a strong note with a 5 per cent weekly gain. Investors however need to tread carefully in the near-term since the stock is nearing the strong resistance zone around Rs 1,450 offered by the 200-day moving average and the November-2008 peak. Short-term traders can hold their long positions with a stop at Rs 1,340. Decline below will take the stock to Rs 1,288.
The stock is currently pausing close to the upper boundary of our medium-term range that is at Rs 1,500. A strong break above this level will give the next target at Rs 1,580 and Rs 1,650 for Infosys.
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