Investors with a short-term horizon can buy the stock of NIIT at current levels. The stock jumped 8.4 per cent with good volume on Monday and has marginally closed above the key resistance level of ₹85. Following a sharp fall in the month of September, the stock recorded a 52-week low at ₹60.8 in early October and found support at this low. The stock subsequently changed direction and has been on a short-term uptrend since early October.

While trending up, the stock emphatically broke above a key resistance at ₹75 and also its 50-day moving average. The stock now trades well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI hovers in the neutral region with an upward bias. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest.

Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹89.5 and ₹91.5 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹83.5.

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

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