Technical Analysis

Nucleus Software Exports: Buy

Yoganand D | Updated on April 21, 2019 Published on April 21, 2019

Investors with a medium-term horizon can buy the stock of Nucleus Software Exports at the current levels. The stock jumped almost 10 per cent last week to close at ₹377.9 on the BSE.

Following an intermediate-term down-trend from the new high of ₹602 recorded in December 2017, the stock found support in the band between ₹315 and ₹325 in February 2019. Subsequently, it changed direction, triggered by positive divergence in the daily relative strength index, and began to trend upwards. Since then, the stock has been in a short-term up-trend.

 

While trending up, the stock conclusively breached a key resistance at ₹360 as well as the 200-day moving average poised at ₹369 with the help of last week’s strong 10 per cent rally.

Currently, the stock trades well above its 21- and 50-day moving averages, too.

There has been an increase in daily volume over the past three trading sessions. The daily RSI feature in the bullish zone backing the bullish momentum and the weekly RSI is charting upwards in the neutral region. Moreover, the daily as well weekly price rate of change indicator hovers in the positive territory, implying buying interest.

Overall, the stock is experiencing bullish momentum; the medium-term outlook is bullish for Nucleus Software Exports. It has the possibility to trend upwards and reach the price targets of ₹410 and ₹440 with a minor pause at around ₹420. Traders with a medium-term view can buy the stock with a stop-loss at ₹347.

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