Infosys Q3 Results will be declared before Friday market opening this will result which will be coming out after stock has hit a fresh life high of 3575.
Infosys is famous for Wild swing after the Quarter results as shown in below chart . Except last quater when stock opened gap up of 4% but got sold off immediately, Past 3 Quarters have been market with Huge gap up and gap downs by more than 10%. So trading in Infosys is playing with fire 1 day before results day 🙂
Most of traders use the option route to trade Infosys so am discussing what option data is revealing 1 days before results.
Option Market Analysis
The implied volatility of ATM options is at 39-42%, which implies that traders expect a sharp swing in Infosys shares on Friday. Option premiums are now so high that the stock will have to move by well more than 7% for straddle buyers to profit. In a straddle position, traders buy both a call and a put option, expecting to profit from a sharp move in either direction but with such high IV’s it does not make a good risk to reward ratio to Buy straddle and hence traders should avoid the same.
Daily Chart of Infosys has formed a triple top pattern and is also trading in a upward rising channel,Range of 3421- 3392 is very crucial for further up move in stock price.Unable to hold it stock can move down to level 3250 -3191.
Weekly Chart Time Analysis
Time analysis on Weekly chart is shown, It seems Infy has created its short term top and any close below 3392 stock will correct till 3250 odd levels.
Traders who follow TC level Keep a close eye on 3499 cash level for Infoys. Till 3499 is not crossed stock will remain in bear grip.
Intraday Traders can use the below mentioned levels.
Buy above 3442 Tgt 3461,3495 and 3515 SL 3428
Sell below 3421 Tgt 3407,3390 and 3353 SL 3441