Shares of Infosys Ltd today saw over 2% increase in value post updates from its Annual General Meeting. The IT bellwether’s non-executive Chairman Nandan Nilekani said on June 23 that India’s second largest software exporter was ready to get back to faster growth as the focus shifts to execution of previously laid out plan when addressing shareholders at 37th annual general meeting in Bengaluru. He further said the company took stock of its current capabilities and was convinced that there was no better time strategically than now for Infosys. However an anonymous whistle-blower has raised concerns over Infosys not filing with the US Securities and Exchanges Commission the mandatory Form 20F this year that contains financials and key risks to the company and this type of delay is done only when the company is under ongoing investigations by SEC and this may prove to be problem for share holders in both US and India.
With both positive and negative news that could have huge impact on share value coming on same day at start of the week, we can expect the share to be highly volatile during rest of the week. Investors are currently awaiting official response from Company on the allegations. The share touched an intra-day high of 1278.80 in NSE and closed for the day at 1272.45 with 1.97% increase in value. When looking from technical aspect the share shows signs of continued uptrend movement in near future.RSI indicator which is used to measure the momentum of stock based on speed of change in stock price regardless of direction in which price moves is currently in range of 50 to 68 as the signal line continues to move in neutral region with a slight upward incline supportive of existing momentum for upward price growth.
Parabolic SAR indicator and ADX crosses indicator which are used to identify good points of entry and exit have both formed bullish signals in intra day and daily charts supportive of continued uptrend price growth in near future trading session. Similarly Zig Zag indicator which is used to predict reversal of trend in longer time frame without being influenced by any short term volatility has also formed uptrend indication supportive of continued bullish price movement. Expected support and resistance levels for the stock are at 1296.54 and 1217.89 respectively.
Source : 1 hr chart from Mcharts MT4 Platform