Investors with a short-term perspective can buy the stock of Firstsource Solutions at current levels. The stock has been in an intermediate-term uptrend since it took support at ₹20.10 in March 2020. After a three-month range-bound movement between ₹68 and ₹80 the stock eventually breached the sideways range on the upside in late December 2020 witnessing strong spike in the price. However, the key resistance at ₹110 limited the upside and the stock began to move sideways with a positive bias.
On Monday, the stock gained 5.2 per cent accompanied by extraordinary volume, surpassing the short-term downtrend. Moreover, the stock trades well above the 21- and 50-day moving averages. There has been an increase in daily over the past two trading sessions. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone backing the up-move.
Overall, the short-term outlook is bullish for the stock. It has potential to trend upwards and reach the price targets of ₹106.5 and ₹108.5 in the coming trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹100.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.