Should I Remain Invested In Infosys or Not?
Infosys Company was established in 1981, it’s a NYSE listed global consulting and IT service company.
In last few days, Infosys has become hot cake for newsrooms. Recently On 18th Aug, Infosys stock has fallen over 5 percent in intraday and touched fresh 52-week low on Monday following news of its ex. CEO and MD, Vishal Sikka’s resignation on Friday. A surprise move from Vishal Sikka to stepping down from the company’s top post due to ‘constant distractions’ is clearly pointing towards the all-out war between the management and founders of the IT bellwether.
After the news of Vishal Sikka’s resignation, the stock lost its huge capital from the stock market. The stock opened at 1017.90 and made low of 884.2. Even after 2 days of the news all the retail investors, traders were in panic selling mode. Investors are still in dilemma, either they should remain invested or not.
But now, after the news and panic selling mode, something has turned into positive for Infosys. Narayan Murthy, Founder of the company came out and took bold decisions. Infosys has appointed Nandan Nilekani as new nonexecutive chairman and Board of directors on Aug 24, 2017. Mr. Nandan Nilekani has prior experience of running Infosys successfully, and he might be taking some strong actions in upcoming weeks.
Infosys has good fundamentals and always having very impressive order book. The company had achieved many milestones in its history and also have so much potential to achieve much more in upcoming years. As per the news from the stock market, the company is still expecting 17% of earning growth in FY18.
Still, you must be in confusion, whether to remain invested or not. Am I right? Only the news from the stock market and fundamentals studies of any stock are not sufficient all time to decide the future movement of any stock. You must consider the combination of market news, companies fundamentals, and technical aspects before investing into it. So here to confirm your doubt let’s take a look at Infosys’s technical views too.
So many Buy Sell Signal software (free/paid) available in the market with rich features like high-quality charts, technical indicators, Buy Sell screeners, Query builder etc. Most of the technical analyst uses those stock market software to check technical details and to predict the future movements of any stock. We have developed our own online technical analysis tool called SmartTrader+ with an accuracy of more than 70% EOD. You can use our software to check technical views of any NSE listed share. We give 3 days free trial too.
As per the technical chart of Infosys from SmartTrader+, the share is running under all important EMAs, and SUPERTREND. EMA20, EMA50 has given negative crossover at end of the trading session on 21st August. In coming few days, if this stock manages to cross a barrier of Rs.955 level & also stays above this price level it may go up easily.
As per the weekly chart of Infosys from SmartTrader+, it has taken the support of SUPERTREND from last two weeks. In the last week of August, it has opened at 943 price level, 31 points up. It's a good sign for upcoming days. And as per the monthly chart, it is in a consolidation phase, but not showing a negative picture for investors.
So, as per all the market news, fundamentals views and technical views of Infosys, we can say that it is not showing any possible negative impact in future. Even Narayan Murthy is also happy after Nilekani’s re-entry in Infosys. He had given statement “I wish Nandan Nilekani brings back ’achhe din’ to Infosys”. So we suggest all Investors & traders not to panic and behold or buy in small quantities after crossing 955 level. Have a safe trading, Happy Trading.
- Anand Singh Gaur
- Sunil Kothari