Infosys has support at Rs 1250-1275: D Dutta

Devangshu Dutta, Consulting Editor of Outlook is of the view that Infosys Technologies has support at Rs 1250-1275.

Dutta told CNBC-TV18, "The technical problem is that you are now dealing with support resistance levels we last saw in mid-2006. The market has a memory because traders and investors in the market have a memory as in someone who has bought Infosys at Rs 1275 two years ago and made money, may or may not be prepared to buy it again at Rs 1275 and make money and the longer that connection gets in terms of time the more tenuous it is and I would say that right at this moment you have to reboot our entire analysis in terms of supports and resistances. The prices we have been dealing with over the last one and a half to two years are fairly meaningless and I don’t think you can expect Reliance to go back to Rs 2200 not within calendar 2008. So if you are going long at these levels you are going long with hopes of very short term small profits or you are buying with a 1-2 year investment perspective."

He further added, "At these levels I think Infosys at Rs 1250 or Rs 1275 levels will have support coming in and people will do wait for Q2 results and guidance’s. For Reliance, it seems to be a slightly different case because you have to see Reliance and RPL together, even though they are separate companies, the RPL situation is also fairly worrying and that stock has lost about Rs 40 in the last 15 sessions that’s in percentage terms or a bigger loss. So I would maybe be looking at Reliance Falling even significantly lower from these levels and the take on RPL is probably more important than the take on Reliance itself because those two stocks will move together I think."

Source: MoneyControl