Today's Pick

KPIT Cummins Infosystems (Rs 139.2): BUY

Yoganand D. BL Research Bureau | Updated on March 12, 2018 Published on August 13, 2013


We recommend a buy in the stock of KPIT Cummins Infosystems from a short-term

We recommend a buy in the stock of KPIT Cummins Infosystems from a short-term perspective. It is evident from the charts of the stock that after taking support at around Rs 95 in April, the stock reversed direction triggered by positive divergence in daily indicators. Since then, the stock has been on a strong medium-term uptrend. Short-term trend is also up. The stock is hovering above its 50- and 200-day moving averages.

On Tuesday, the stock decisively broke out of its key immediate resistance at Rs 135 by gaining 7.5 per cent with good volumes. The daily relative strength index entered the bullish zone from the neutral region and weekly RSI is featuring in the bullish zone. The daily moving average convergence divergence indicator has signalled a buy and is featuring in the positive territory. The weekly MACD is moving higher in line with the stock price implying upward momentum. Both daily and weekly price rate of change indicators are hovering in the positive area indicating buying interest.

Considering that the stock’s medium-term uptrend is in tact, we are bullish on it from a short-term perspective. We anticipate its uptrend to continue and reach our price target of Rs 145 or Rs 148 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 136.4 level.

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

Published on August 13, 2013
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