Infosys has been steadily inching higher in a corrective uptrend after a gap down movement in mid April 2012. The recent upmove has now sufficiently retraced the previous fall and the stock trades near the resistance of the Gap created in April. Additionally the stock continues to languish below it’s 200 Day EMA and appears ripe for another round of quick decline which may take it down to the earlier swing low of 2198 and even lower, We recommend a short sell on the stock at present levels and on any advance till 2500 with a stop loss of 2570 on closing basis for a downside target of 2200 in next couple of weeks.
Ranbaxy appears to be forming a bearish reversal pattern – Head and Shoulder on the daily chart. Though, the formation of the right shoulder however is not yet complete, the stock has made a lower low recently when it reacted sharply after forming a high of 514. Additionally the momentum oscillators are also pointing towards lower prices in coming few weeks. We recommend a sell on the stock at present level and on a subtle bounce back till 495 with a stop loss of 510 for a potential downside till 447 and possibly even lower over the course of coming few weeks.