The chart shows Infosys Ltd. (NSE: INFY) on a monthly timeframe. Here's a breakdown of the key elements:
1. **Long-term SIP (Systematic Investment Plan) Stock**:
- The chart suggests holding this stock for the long term and booking profits when gains reach 100% or more.
2. **Fibonacci Retracement Levels**:
- The stock is currently around the 0.618 Fibonacci level at 1,405.05, which is often considered a strong support level.
- The 0.382 level is at 1,066.30, and this could be another key level of support if the price drops further.
3. **Buying Strategy**:
- Add to your position with every 25% drop or more from recent highs, averaging down your cost basis.
4. **Volume and Trend Analysis**:
- Volume bars indicate trading activity. There's a steady increase in volume, indicating growing interest over time.
- The long-term trend appears to be upward, despite recent corrections.
### Suggested Trading Strategy
1. **Long-Term Holding**:
- Continue to hold the stock as part of a long-term investment strategy.
- Consider booking partial profits when the stock doubles from your purchase price.
2. **Accumulation on Dips**:
- Add to your position during significant dips (25% or more) to lower the average purchase price.
3. **Monitoring Key Levels**:
- Watch the 0.618 Fibonacci level (1,405.05) for support.
- If the price breaks below this level, look for the next support around 1,066.30.
4. **Set Stop-Loss Orders**:
- Implement stop-loss orders to manage risk, especially if the stock falls below key support levels.
By following these guidelines, you can effectively manage your investment in Infosys Ltd. while aiming for long-term growth.
Investment Disclaimer
Investing in the stock market involves substantial risk, including the loss of principal. Past performance is not indicative of future results. It is important to conduct your own research and analysis before making any investment decisions. Consider seeking advice from a financial advisor to ensure that investments are aligned with your individual circumstances and risk tolerance. Never invest money that you cannot afford to lose. The information provided here is for educational purposes only and should not be considered as financial advice.
1. **Long-term SIP (Systematic Investment Plan) Stock**:
- The chart suggests holding this stock for the long term and booking profits when gains reach 100% or more.
2. **Fibonacci Retracement Levels**:
- The stock is currently around the 0.618 Fibonacci level at 1,405.05, which is often considered a strong support level.
- The 0.382 level is at 1,066.30, and this could be another key level of support if the price drops further.
3. **Buying Strategy**:
- Add to your position with every 25% drop or more from recent highs, averaging down your cost basis.
4. **Volume and Trend Analysis**:
- Volume bars indicate trading activity. There's a steady increase in volume, indicating growing interest over time.
- The long-term trend appears to be upward, despite recent corrections.
### Suggested Trading Strategy
1. **Long-Term Holding**:
- Continue to hold the stock as part of a long-term investment strategy.
- Consider booking partial profits when the stock doubles from your purchase price.
2. **Accumulation on Dips**:
- Add to your position during significant dips (25% or more) to lower the average purchase price.
3. **Monitoring Key Levels**:
- Watch the 0.618 Fibonacci level (1,405.05) for support.
- If the price breaks below this level, look for the next support around 1,066.30.
4. **Set Stop-Loss Orders**:
- Implement stop-loss orders to manage risk, especially if the stock falls below key support levels.
By following these guidelines, you can effectively manage your investment in Infosys Ltd. while aiming for long-term growth.
Investment Disclaimer
Investing in the stock market involves substantial risk, including the loss of principal. Past performance is not indicative of future results. It is important to conduct your own research and analysis before making any investment decisions. Consider seeking advice from a financial advisor to ensure that investments are aligned with your individual circumstances and risk tolerance. Never invest money that you cannot afford to lose. The information provided here is for educational purposes only and should not be considered as financial advice.