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Infosys (INFY): ₹1,636 – The spring coiling for the punch!?

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NSE: INFY | Timeframe: Daily

Key Technical Observations:
Classic Cup & Handle Formation:

INFY has carved a textbook bullish Cup & Handle pattern on the daily chart, with the "handle" now consolidating tightly near the ₹1,636 resistance.

Price is gathering power for a punchy breakout – reducing volatility and compression signal imminent momentum.

Breakout Trigger at Resistance:

The handle’s consolidation at ₹1,636 shows sellers exhausting, with consistent support from the 50-day EMA.

Watch for a daily close above ₹1,636 to confirm bullish momentum ignition.

Volume-Powered Setup:

Potential surge in volume on breakout would validate the "power gathering" phase.

Trade Strategy:
Entry: Daily close above ₹1,636 (Breakout Confirmation).

Stop Loss: ₹1,530 (below handle low).

Target: ₹1,960 (Measured Move: Cup Depth Projection).

Risk-Reward: 1:3.5 (High-Probability Setup).

Why Trade This?
Pattern Strength: Cup & Handle is a high-probability continuation pattern – especially with 50-EMA confluence.

Sector Alignment: IT index resilience supports INFY’s breakout potential.

Clear Catalyst: Breakout above ₹1,636 opens path for explosive move toward ₹1,960.

DISCLAIMER:
This analysis is for educational purposes only. Not financial advice. Trading involves substantial risk. Past performance doesn’t guarantee future results. Always conduct your own research, consider risk management, and consult a SEBI-registered advisor before trading. Pattern success rates vary based on market conditions.



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