Investors with a medium-term perspective can buy the stock of KPIT Technologies at current levels. Following a sharp fall in early March this year, the stock registered a 52-week low at ₹34.4 in late March and reversed direction.

Since then, the stock has been on an intermediate-term uptrend. After accelerating in the month of September, the stock had encountered a resistance at ₹130 and witnessed a corrective decline until it found support at ₹90 in late October.

This corrective decline was healthy from a medium term long-term perspective of the uptrend.

Subsequently, the stock resumed the uptrend from the vital base level of ₹90 and has been on a short-term uptrend. Testing resistance at around ₹113 for almost two weeks, the stock breached it by gaining 7 per cent, accompanied by extraordinary volume on Friday.

This rally has strengthened the stock's both short- as well as the intermediate-term uptrend. The stock trade well above the 50- and 200-day moving averages. The stock’s recent rally has helped the daily relative strength index to re-enter into the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone backing the uptrend.

Besides, the daily price rate of change indicator hovers in the positive terrain and the weekly indicator has entered the positive terrain, implying buying interest.

Along with the positive indicators and the oscillators, the short- and the intermediate-term uptrends are intact.

Thus, the medium-term outlook is bullish and the stock has the potential to trend upwards, surpassing the key immediate resistance at ₹130 in the ensuing weeks.

Medium-term targets are ₹130 and ₹140. Traders with a medium-term horizon can buy the stock with a stop-loss at ₹108.

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