Stocks

Sonata Software (₹258.9): Buy

Yoganand D BL Research Bureau | Updated on July 29, 2020 Published on July 30, 2020

Investors with a short-term perspective can buy the stock of Sonata Software at current levels. Since recording a 52-week low at ₹148 in late March this year, the stock has been in a medium-term uptrend. In late June the stock had breached a key medium-term resistance at ₹230 which subsequently turned into a key base. The stock took support at this level in mid-July and continued to trend upwards. Short-term trend is also up now.

On Wednesday, the stock gained 4.2 per cent with above average volume, strengthening the uptrend. The stock trades well above its 21- and 50-day moving averages. There has been an increase in daily volume over the past four trading sessions. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is trending upwards in the neutral region. Further, the daily and the weekly price rate of change indicator are hovering in the positive terrain implying buying interest.

Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and hit the price targets of ₹270 and ₹275 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹253.

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

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on July 30, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.