Traders and market participants like trending stocks. The stock that is slowly and steadily moving up. The last thing traders want - stuck in a stock that is going nowhere at a time when the broader market is rallying like crazy. Sometimes, long-term investors wait on HOPE but they also give up after a while. There is opportunity costs involved.
Infosys stock was directionless before today's earnings but there was still HOPE. But after today's earnings, more money will desert the stock. It's not a pretty picture and it looks like things will get worse before it gets better.
There is possibility that Infosys might disappear from trading radar for a while as it goes through the pain of more underperformance.
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers