We recommend a buy in the stock of Hexaware Technologies from a short-term perspective. It is evident from the charts of the stock that following a medium-term downtrend from its all-time high, the stock found support at around Rs 75 in late January. Since then, the stock has been on a medium-term sideways consolidation phase, in a broad range between Rs 75 and Rs 98. After testing the lower boundary last week, the stock started to move upwards breaching its 21- and 50-day moving averages.
On Thursday, the stock jumped almost 4 per cent accompanied by above average volume, breaking out of a flag pattern. Flag patterns are continuation patterns. The daily relative strength index is featuring in the bullish zone and weekly RSI is climbing higher in the neutral region towards the bullish zone. The daily as well as weekly price rate of change indicators are featuring in the positive area implying buying interest. The daily moving average convergence divergence indicator is trending higher in line with the stock price indicating upward momentum.
We are bullish on the stock from a short-term perspective. We expect its rally to continue and reach our price target of Rs 95 or Rs 97 in the forthcoming trading sessions. Trader with short-term perspective can buy the stock with stop-loss at Rs 89 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)