Technical Analysis

KPIT Technologies (₹218.7): Buy

Yoganand D BL Research Bureau | Updated on October 15, 2018 Published on October 15, 2018

Investors with a short-term horizon can buy the stock of KPIT Technologies at current levels. On Monday, the stock jumped over 8 per cent accompanied by above-average volume. The stock moved past a key resistance at ₹205.

Following a sharp fall in late September, the stock found support at ₹187 recently and changed direction, triggered by positive divergence in the daily relative strength index and price rate of change indicators. There has been an increase in daily volumes over the past two weeks.

The daily relative strength index (RSI) is on the brink of entering the neutral region from the bearish zone and so does the weekly RSI. The daily price rate of change indicator is charting upward.

 

The stock can continue its on-going rally and reach the price targets of ₹228 and ₹232 in the short term. Traders can buy the stock with stop-loss at ₹214.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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