Technical Analysis

Nucleus Software Exports: Buy

Yoganand D | Updated on April 21, 2019 Published on April 21, 2019

Investors with a medium-term horizon can buy the stock of Nucleus Software Exports at the current levels. The stock jumped almost 10 per cent last week to close at ₹377.9 on the BSE.

Following an intermediate-term down-trend from the new high of ₹602 recorded in December 2017, the stock found support in the band between ₹315 and ₹325 in February 2019. Subsequently, it changed direction, triggered by positive divergence in the daily relative strength index, and began to trend upwards. Since then, the stock has been in a short-term up-trend.


While trending up, the stock conclusively breached a key resistance at ₹360 as well as the 200-day moving average poised at ₹369 with the help of last week’s strong 10 per cent rally.

Currently, the stock trades well above its 21- and 50-day moving averages, too.

There has been an increase in daily volume over the past three trading sessions. The daily RSI feature in the bullish zone backing the bullish momentum and the weekly RSI is charting upwards in the neutral region. Moreover, the daily as well weekly price rate of change indicator hovers in the positive territory, implying buying interest.

Overall, the stock is experiencing bullish momentum; the medium-term outlook is bullish for Nucleus Software Exports. It has the possibility to trend upwards and reach the price targets of ₹410 and ₹440 with a minor pause at around ₹420. Traders with a medium-term view can buy the stock with a stop-loss at ₹347.

Published on April 21, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.