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 after its September 2012 peak of Rs 142, it has been on a medium-term downtrend. However, the stock found support at around Rs 75 in late January 2013 and again in early February and changed direction triggered by positive divergence in daily relative strength index. Moreover, we notice formation of an inverse head and shoulders pattern spanning since early December. On Wednesday, the stock jumped 4 per cent with good volume, breaking through the neck line at Rs 93. The stock is hovering well above its 21 and 50-day moving averages. The daily RSI is featuring in the bullish zone and weekly RSI is inching higher in the neutral region towards the bullish zone. Both daily and weekly price rate of change indicators are hovering in the positive terrain, implying buying interest. The daily moving average convergence divergence indicator is moving higher in line with the stock price and has signalled a buy. We are bullish on the stock from a short-term perspective. We anticipate its rally to continue and reach our price target of Rs 99.5 or Rs 101.5 in the approaching trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 93.7 level.

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

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