The bearish island reversal pattern formed on April 4 behaved as expected. The markets reacted on expected lines. The correction seemed to be over somewhere between Wednesday and Thursday and there was a smart recovery. Things seemed to be going along well even though Infosys announced poor results, which were declared before trading began last Friday when the markets were in positive territory till 1.30pm. Thereafter Infosys again started tanking and led the rest of the market down as well. Call it the Infosys factor or Friday the 13th factor, Infosys lost Rs 346.75 on a single day which contributed to 202 points on the SENSEX fall. All in all, the weekly loss on Infosys was Rs 447 or 15.68 per cent. The company has reported lower turnover compared to the December 11 quarter. The revenue is lower in rupee terms by 4.8 per cent at Rs 8,852 crore and in dollar terms lower by 1.9 per cent at $1,771 million. The company has also said that it would not increase salaries of its employees and this affected the company and the sector. The whole market was affected by mid-afternoon and we had a huge fall of 238 points by the end of the day. The intraday difference between the high and the low was 368 points previous week.

Illustration/Amit Bandre