Today's Pick

3i Infotech (Rs 50.1): Buy

Updated on: Apr 28, 2011
image caption

We recommend a buy in the stock of 3i Infotech. It is seen from the charts that they stock found support at its long-term base in the band between Rs 38 and Rs 40 in February 2011. After re-testing this significant support in mid-March, it bottomed. A medimum-term uptrend then started, triggered by positive divergence in the weekly relative strength index. On April 25, the stock decisively broke through its medium-term downtrend-line that was in place since November 2010. Further, reinforcing the uptrend, the stock penetrated its immediate resistance positioned at Rs 48 by jumping 6 per cent on Thursday. We notice that there has been an increase in volumes over the past six trading sessions. Daily moving average convergence divergence indicator has signalled a buy and is hovering in the positive territory implying upward momentum. We are bullish on 3i Infotech from a short-term horizon. We anticipate its up-move to continue until it reaches our price target of Rs 52 or Rs 53.5. Traders with short-term perspective can buy the stock with stop-loss at Rs 48.5. 

Published on April 28, 2011

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

This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you