The up-move in Infosys began explosively and moved towards it's major resistance at 2920. Stocks that explode into rallies can be highly rewarding but also very risky, entries should only be taken upon consolidation or upon break of an important resistance. The up-move made a top at 3010 & then the stock moved below the important level of 2920. Looking at the stock's charts now 2828 is a minor support which will turn into a resistance once it's broken. Major supports lie at 2700 and 2580, these are the only real supports for the stock.
Investors that have purchased the stock on the rally should exit only on the break of 2580 which is the major resistance & re-enter if and only if the stock moves above 2920 conclusively with the same as a stop loss on a daily closing basis. Investors that are looking to enter the stock presently should look for consolidation at around 2700 & buy into the stock at these prices with a stop loss of 2580. If the stock does not approach 2700 and moves back up then investors should only enter above 2920 with the same as a stop loss as discussed above.
We have so far seen a very reluctant rally in the broader indices over the last 12-18 months, so we suggest extreme caution with investments. The intermediate trend in downwards & volatile but the long term upward trend is still holding.