Infosys moved below our short-term target at Rs 1,564 to form an intra week trough at Rs 1,503.

As explained earlier, this is a key support level for the stock and a reversal from here can take the stock towards Rs 2,000 again.

Conversely a penetration of this level would pull it lower towards Rs 1,300 again.

The near-term outlook for the stock is however negative. The 10-week rate of change oscillator is moving deep in to the negative zone and the weekly relative strength index is at a reading of 42 implying that the decline can continue in the medium-term.

Failure to move above Rs 1,650 next week would be the cue for short-term traders to go short with the target of Rs 1,413.

— Lokeshwarri S. K.