Chart Check: Down over 30% from Jan 2022 highs, time to go short in InfoEdge with a target of Rs 3,350

Info Edge, part of the S&P BSE 100 index, has fallen more than 30% from its January 2022 highs and the technical chart pattern suggests that the weakness is likely to continue.

Short-term traders can go short on Info Edge for a possible target of Rs 3,300 in the next 1-2 months, suggest experts.

The stock has given a breakdown from a symmetric triangle pattern on the daily charts which could fuel further selling pressure.

Triangles are formed when the market loses interest in a counter but then picks up momentum. A breakdown from the pattern means bears are likely to dictate price trends.

A symmetrical triangle is commonly considered a continuation pattern. Also Read

In terms of price action, the stock price is trading well below most of the short and long-term moving averages of 5,10,30,50,100, and 200-DMA which is a bearish sign.


The Relative Strength Index (RSI) is at 31. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is below its Signal and Center Line, this is a strong bearish indicator.

Broad market indicator Nifty has formed a bearish engulfing pattern on the monthly chart and the daily chart shows stiff resistance at 18300 to 18400 in the near term. The Nifty IT sector continued to be under selling pressure.

“Looking at stock within the IT space, Naukri stock has given a breakdown from the symmetric triangle. The stock has reacted from the long-term moving average. On a higher time frame, Stock is showing bearish continuation sign,” Kapil Shah, Technical Analyst, Emkay Global Financial Services Limited and Trainer at FinLearn Academy, said.

“Based on the aforementioned rationale, the stock can be considered as a short candidate in the range of 3725 to 3800 level with downside potential up to 3350 level. Stop loss can be maintained at the 3950 level. Duration can be of 1 to 2 months,” recommends Shah.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)