Earlier in the Day - At 09:00 Hrs 3rd April2017
NR Narayana Murthy slams Infosys COO pay hike
In previous analysis we proposed an completing in the zone 1040-1045 - which was the cream zone as Infy had strong resistance & we had tripple tops as well giving us an opportunity to sell at the top. It tested patience for so many traders that some even started asking me it came back to 1040 - so as a trader you have to introspect asking that if price is facing such strong resistance then we should use that opportunity.
On Friday 31st March2017- Most wanted day arrived & Infy puked from 1030-1035 zone to 1008 -day low but took traders surprised with unwanted bounce which travelled to 1029 in few minutes of trading.
We waited cautiously putting stops above 1037 if not booked profits at day low of 1008.
09:00 Hrs 3rd April2017
Infy opened gap up at 1032- Day High & puked again Why, because there was a news at 09:00 Hrs - NR Narayana Murthy slams Infosys COO pay hike - As a result Infy went sharp down.
12:32 Hrs 3rd April2017 - In the middle of the post
Infy falls below 1018 & makes day low 1006.55 - we booked profits & waiting outside to see next set of reactions.
Previous Update- ED to end the move at 1042
At 20:00 Hrs IST 3rd April2017
COO pay hike row: Infosys justifies decision, says effective rise only 1.4%
Trading Strategy - 5thApril2017
So, we got the news -infy justifies that COO pay is effective rise only 1.4% - hence, can we get the push on Wednesday above 1014 as confirmation point. Likely 1022-1025 it retraces 61.8% & above 1025 -it can attempt for 1030-1035.
Note - Kindly manage the risk at your end before trading.
Call did not activate & always had a risk of selling pressure below 1005- who ever followed the updates -he would have been clear about these levels & its importance.
Poking below 999 - Infosys looks weak for target zone 978-980 next below 986.