Lot of write ups have been recently on various forums about how Infy could face a turmoil in business continuity. I think all those will now turn optimistic because Nandan Nilekani will bring stability, focus and renewed enthusiasm in the stock, Infy’s business and overall, calm to the stakeholder relationship.

I like a stock when I see a stable and focussed management leading the business. I think I can expect the same from Infosys from management point of view. So, I feel positive now on the stewardship.

Question now comes on operating environment and dollar revenue growth trend. I would believe it remains the same like for industry. So, next 12 months don’t look a sharp turn for Infy but October strategy call should be interesting to understand how and where company is seeing revenue growth and how much durable it is.

Now question comes is what are trading thinking right now ?

So, let me help you with some pointers here .

Bears move into profit booking
Panic is over, stock is setting down in its range now
Thursday saw 32% lower volumes vs prior day, largely due to end of panic short selling
F&O Data indicates conviction from Traders that Stock has formed a floor of 880 in the near term
Short covering was seen in August Futures on Thursday, especially with high volumes in second half of Thursday

Pick up in Rollovers
Rollovers have started to pick up as about 24% of positions have been rolled over till Thursday
Infosys August Future positions only at about 41% of the market wide limits

Trading Range set to Drift Higher
September Futures saw 43% addition in Open interest on Thursday
Short Covering should accelerate next week as Traders had deployed strategy of long calls and short futures
Trading Range had narrowed down to 860-900, Likely to expand towards 880-960 levels at the start of the next week