Investors with a short-term perspective can consider selling the stock of KPIT Technologies at current levels. Although the stock is in a medium-term uptrend, there is a trend reversal in the short term.
After encountering a key resistance at ₹310 in early August as well as in early September, the stock changed direction triggered by negative divergence in the weekly relative strength index. On Wednesday, the stock fell 2.5 per cent with good volume, breaching its 21- and 50-DMAs. Moreover, this decline has also breached the medium-term uptrend-line. The daily relative strength index is on the brink of entering the bearish zone from the neutral region while the weekly RSI has slipped into the neutral region from the bullish zone.
Taking a contrarian view, the short-term outlook is bearish for the stock. It can continue to decline and hit the price targets at ₹280 and ₹274. Traders can sell with stop-loss at ₹298 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.