Today's Pick

Hexaware Technologies (Rs 78.4): Buy

Yoganand D | Updated on September 27, 2011


Investors with short-term perspective can consider buying the stock of Hexaware Technologies. It is seen from the charts of the stock that ever since bottoming out in first quarter of 2009, it has been on a long-term uptrend forming higher peaks and troughs. After taking support at around Rs 34, the stock resumed its long-term uptrend in September 2010.

Both intermediate and medium-term trends are up for the stock. Long-term support at Rs 70 arrested the stocks decline in late August this year and the stock resumed its up-move subsequently. On Tuesday, it jumped 6.5 per cent with above average volumes breaching its near-term resistance at Rs 76 and its 21-day moving average.

The 14-day relative strength index is rising towards the bullish zone in the neutral region and weekly RSI is on the brink of entering into the bullish zone. Daily moving average convergence divergence indicator has signalled a buy. Further, daily price rate of change indicator has entered into the positive terrain implying buying interest.

Considering that the stock's intermediate-term uptrend line is in tact, we are bullish on the stock from a short-term horizon. We anticipate it to rally further and touch our price target of Rs 81 or Rs 83.5 in the approaching trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 76.

Published on September 27, 2011

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