Jubilant FoodWorks has been in a short term uptrend. After a sharp run up, the stock has been consolidating and has reverted to its 40 hour moving average Rs 514 (support). The hourly moving average has reached the equilibrium line and can start a new cycle on the upside. The consolidation appears matured and can resume its upmove.
The Jubilant FoodWorks stock is likely to test the previous swing high of Rs 543, and can extend towards Rs 549 from a short-term perspective. A stop loss of Rs 507 should be kept for the long positions.
Infosys
The IT index has witnessed a trend reversal. Among the IT sector stocks, Infosys has completed a five-wave decline on the weekly charts. Last week, it witnessed a sharp rise and has managed to close above the 40-week moving average (Rs 1,497).
The IT stocks corrected on Monday. However, this dip should be used as a buying opportunity as the overall trend has reversed from a short-term perspective. On the upside, we expect Rs 1,546 – 1,590, while stoploss should be placed at Rs 1,462 for the long positions.
(Jatin Gedia is a technical research analyst at Sharekhan by BNP Paribas. Views expressed are his own.)
First Published: Jun 11 2024 | 6:20 AM IST