A Technical Look Into HDFC Bank and Infosys

In this article, I will look at two stocks that have been making headlines this weekend. This is because both are major players in the market and most have been waiting for their results with rose-colored optimism. These stocks are Infosys (NS:INFY) and HDFC Bank (NS:HDBK). 

Let’s start with Infosys. Now the results of Infosys were truly a kick in the sack of the bullish shareholders. I say this as not only did the firm’s revenue see a dip, but we also saw the deal win rate drop to the lowest in the past three quarters. Thus, the results are clearly not ideal for investors. Now when coming to the technicals. The stock has been in a medium-term bearish trend for the past few weeks as the equity fell from Rs. 1,620 to Rs. 1,380 after which it stabilized around this zone. However, I now expect that to change. This is as I expect the equity to fall until the support zone at Rs. 1,315 and Rs. 1,260. Once we reach here, I shall share the next levels via my Twitter handle.

Now moving on to HDFC Bank. The stock has been making waves in Bank Nifty. This is as it helped the index have a steady rise in the latter part of last week. I say this as Thursday’s upswing in the index was largely due to the hope and optimism surrounding HDFC Bank’s results. However, now that the results are out, we see that the optimism has just had a cold shower. I say this as the results are neither positive nor negative. Thus, in terms of price action, I believe HDFC Bank will form a high in Monday’s trading session, which will use my quant resistance levels of Rs. 1,700 and Rs. 1,740. Once it touches this zone, I expect the stock to commence a pullback that will benefit CE sellers. This is as after touching this zone, I expect the equity to shake off the weak hands with a pullback which in turn will set it up for a bigger up move in the coming weeks.

Overall, both stocks will be trading in different directions in the coming weeks. This is why I expect Infosys to have a rough time as its results were lackluster plus its technicals are soft. Thus, any upswing in Infosys will simply be a dead cat bounce that will trap a lot of gullible investors. On the other hand, HDFC Bank bank may face a temporary pause in its upswing. But, I believe this will be short-lived as the stock will simply be shaking off weak hands before rising further. 

Lastly, I have also covered these stocks via a Youtube Video linked below. This is as there I have been able to give the stocks a more detailed analysis using their respective charts. So do check it out. 

Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgment before making investment decisions. The report provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.