Stock name: Persistent

Pattern: Breakdown of Head and Shoulder pattern

Time frame: Daily

Observation:

The stock had given a fantastic rally after the Covid crash but started to go in the sideways/correction zone in the last year. Recently the stock showed a good run up to the highs but formed a double-top pattern and started falling. Today the stock has broken down from the head and shoulder pattern, which is a bearish pattern. However, one important point to be noted is that it is forming a pin bar, which indicates buying from lower levels.

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Disclaimer: This analysis is purely for educational purposes and does not contain any recommendations. Please consult your financial advisor before taking any financial decision.

News for the day:

1) Q4 result update: Infosys

CC Revenue 3.2% down QoQ
PBT 5.2% down QoQ
Revenue guidance for FY24 in CC terms of 4-7% and OPM guidance of 20-22%, which is lower than the current
The stock is down 10% on the results

2) Microsoft Corp.’s Bing may replace Alphabet Inc.’s Google as the default search service on Samsung Electronics Co. devices, according to a New York Times report Sunday.

3) Google CEO Sundar Pichai said in an interview that the push to adopt AI must be well regulated to avoid potential harmful effects. Asked in an interview about what keeps him up at night with regard to AI, Pichai said “the urgency to work and deploy it in a beneficial way, but at the same time it can be very harmful if deployed wrongly.”