Technical Analysis

Firstsource Solutions (₹102.2)

Yoganand D BL Research Bureau | Updated on February 23, 2021

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.)

Published on February 23, 2021

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