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Chart Of The Day: INFY Result Impact

The Infosys stock is down 3.5% to 2,500 as we speak, and it’s a result day tomorrow. Result days are big for the INFY stock; the chart of the day shows the movement of the INFY stock the day before, and on the result day itself.

Infy Result Impact

The last five quarters have seen huge negative moves on result announcements. Probably this has spooked investors already? But honestly the day before has little predictive value: of the last 17 quarters only 8 quarters have seen the earlier day move in same direction as the results day – and even there, magnitudes haven’t been enough for prediction.

  • Arghya says:

    Hi Deepak… great analysis…
    I know the motive of this analysis… I had done the same, earlier … it is to gauge the leak of “inside information”. As I once told you that, there is a very high probability of inside information trade because – to publish result on newspaper companies has to send these confidential numbers to newspapers before publication.
    But I am quite confident that you would not find a definite positive correlation between day-before movement and result-day movement for a company like Infosys. It has excellent corporate governance track record. They must be sending confidential data to editors after market is closed.
    So to get a positive correlation for your analysis, you have to select companies with subs-standard corporate governance. I would suggest avoiding any nifty/sensex companies.
    You know what, I just thought of new strategy for long-term investment. This indicator would be an excellent measure for robust corporate governance. Lower the correlation better is the corporate governance and thus it becomes a tangible measure of – “How much we can trust the management?” —– Any suggestion??

  • bemoneyaware says:

    A very different way of analyzing a stock..