Infosys Ltd. Watch for Darvas Box Breakout.

27 thg 12, 2024

📉 Current Price Action:
Infosys is consolidating within a Darvas Box pattern, trading close to a 3-year-old resistance zone near ₹1,953.7. The stock is forming a base after a pullback, suggesting potential for a breakout.

📈 Trade Setup:

Entry: ₹2,002.1 (above the resistance zone)
Stop-Loss (SL): ₹1,707.6 (on a closing basis)
Target: ₹2,335.8 (medium-term potential)

🚩 Key Observations:

The stock is holding above its Key DMAs, indicating near-term strength.
Consolidation near a key resistance signals a build-up for a breakout, but volumes need to support the move.
If the breakout fails, watch for price action near the lower support zone (₹1,707) for signs of reversal.

⚠️ Caution:

Wait for a confirmation candle with good volume before entering.

Avoid premature entries as the stock could continue consolidating within the current range.

Nifty IT Sector Context:

Nifty IT is showing signs of base formation after a significant pullback. A sectoral breakout above 44,317 could drive momentum across IT stocks, including Infosys.

💡Follow the price action and adjust your strategy based on market cues. A clean breakout could lead to strong upward momentum.