Todays Pick

NIIT (₹98.7)

Yoganand D BL Research Bureau | Updated on January 09, 2018 Published on December 25, 2017

Investors with a short-term perspective can buy the stock of NIIT at current levels. Since taking support at ₹72 in March, the stock has been in an intermediate-term uptrend. However, after encountering resistance at ₹118 in mid-September and started to decline. The stock has been in a medium-term downtrend since then and has corrected 61.8 per cent fibonacci retracement level of prior uptrend. Significant support in the band between ₹90 and ₹93 has been providing base for the stock over the last two months and has capped the downside well. The stock reversed higher last week after testing this support band.

On Friday, the stock gained 3.7 per cent with above average volume, breaching its 21-day moving average. With this rally, the stock’s medium-term downtrend appears to have come to an end. The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI is moving higher in the neutral region. The daily price rate of change indicator feature in the positive territory implying buying interest.

The short-term outlook is bullish for the stock. It can extend the current rally and reach the price targets of ₹103 and ₹105 in the short term. Traders can buy the stock with a stop-loss at ₹96.5.

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

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