Technical Analysis

KPIT Technologies (₹228.2): Buy

Yoganand D BL Research Bureau | Updated on December 19, 2018 Published on December 19, 2018

The stock of KPIT Technologies surged 5 per cent accompanied with above average volume on Wednesday. This rally gives traders with a short-term perspective an opportunity to buy the stock at current levels.

Following a sharp fall in the month of September, the stock found support at ₹187 in early October. The stock subsequently changed direction triggered by positive divergence and has been on a medium-term uptrend since then. After surpassing the 50-day moving average last week, the stock conclusively broke out of a key resistance at ₹220 on Wednesday.

It trades well above the 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest.

The short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹238 and ₹242 in the short term. Traders can buy with a stop-loss at ₹223.

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

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