Today's Pick

KPIT Cummins Infosystems (Rs 121.2): BUY

| Updated on: Jul 19, 2012
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We recommend a buy in the stock of KPIT Cummins Infosystems from a short-term perspective. It is seen from the charts of the stock that after a prolonged sideways movement between Rs 70 and Rs 95, the stock conclusively broke out of this band in early May. Medium-term trend is up for the stock since this April. The formation of higher trough is positive for the stock.

On Thursday, the stock jumped Rs 5.3 or 4.6 per cent with good volume, decisively breaching its 21- and 50-day moving averages. This up move has reinforced the bullish momentum. The daily relative strength index is on the brink of entering into the bullish zone from the neutral region. Both weekly as well as monthly RSI are featuring in the bullish zone. Both the daily and weekly moving average convergence divergence indicators are hovering in the positive terrain implying upward momentum.

We are bullish on the stock from a short-term perspective. We anticipate the stock's rally to continue and hit our price target of Rs 125 or Rs 129 in the upcoming trading sessions. Traders with short-term horizon can consider buying the stock while maintaining stop-loss at Rs 117.5 levels.

Published on March 14, 2018

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