Infy AUG19 Series Bearish View

Infy is trading near the upper band of its trendline resistance on monthly scale. In 2H scale RSI has gone below 60 indicating fresh weakness in the stock. This might be to profit booking pressure at higher levels. Todays attempt to break 800 was proved to be a false breakout and stock saw good selling with volume. One can go long with 790 August PE for 15 with stoploss of 5 and target of 30. Risk to reward is 1:3. You can sell 760 PE against the PE long if you want to trade with hedging to reduce loss.

Comment:

Disclaimer: Objective of this posts is to educate and help members earn profit from trading. I am not a SEBI registered analyst and strongly recommend people not to trade in NSE/BSE/MCX market basis above recommendations. All the stock ideas/views are momentum picks chosen using technical indicators and for education purpose only. And my views may go wrong. I am not responsible for profit and losses or SEBI audits arising out of the above calls. Stock market trading and investment is subject to market risks. Contact your financial advisor before taking trades or trade at your own risk.

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Comment:

Option Writers Can Play with below option spread.

+1x 29AUG2019 790PE - ₹ 15.75
-1x 29AUG2019 760PE - ₹ 6.35
-1x 29AUG2019 830CE - ₹ 6.45
-1x 29AUG2019 740PE - ₹ 3.5
Max. Profit ₹ +36,660
Max. Loss ₹ Undefined
Breakeven 709.5-830.5
Estimated Margin₹ +411,911
PayOff: bit.ly/2JNg7zg

Comment:

Those who want to trade it in futures using stoploss can have SL of 810 as closing basis.

Comment:

Stock made low of 762 (2nd target).